Jaguar Land Rover in Brazil factory deal

Car manufacturer Jaguar Land Rover (JLR) has announced plans to build a factory in Brazil in a £240m deal.

The country has become the fourth largest car market in the world.

Mike Wright, from JLR, said its sales in Brazil had increased by more than 40% this year, to nearly 10,000 vehicles.

The firm said its new plant would be built near Rio de Janeiro and produce more than 24,000 vehicles a year.

Rex Baynton, from Stephens Gaskets Ltd, which produces parts for the manufacturer, said he was worried JLR's decision would hit its current Midlands suppliers.

Some 80% of the vehicles produced by JLR at its Solihull factory are currently exported.

The company already produces a small number of vehicles in several other countries, but its first full production is set to be in China, where it is currently building a new factory.

Martin Jackson, from Strip Tinning Ltd, a Worcestershire company that makes wiring for heated windscreens, said it was planning to follow JLR into the Chinese market.