British luxury car-maker TVR has confirmed that it will build a new factory in the Ebbw Vale Enterprise Zone in South Wales.
The project will provide about 150 new high skilled jobs.
Apart from creating new jobs, setting up the factory can indirectly improve local automotive business through logistics required for the new factory.
This news comes after Aston Martin announced to set up its factory in Vale of Glamorgan, recently. Aston Martin is set to roll out its vehicles from 2020 after the construction of its factory.
Welsh Government has agreed to invest in the car maker which represents over £30m of capital expenditure over the next five years.
TVR chairman Les Edgar said: "This is a fantastic opportunity both for TVR and the Welsh Government. South Wales is becoming a major hub for automotive and motorsport technology and development and the area is a serious opportunity for business development and job creation.
"We have a sports car project that has garnered global approval and excitement, and we are delighted that the Welsh government wish to become a part of an exciting new era for TVR."
Ebbw Vale area is hopeful of another project coming up which is the Circuit of Wales, a £315m project, with a racetrack and motor sports centre. This will host the British MotoGP in 2017.
Setting up the factory next to Circuit of Wales could be advantageous for TVR as it could use the track for testing its new vehicles.
TVR wants to construct the factory by 2017 and the company wants to roll out four new models over the next 10 years.
Welsh first minister, Carwyn Jones said: "This is yet another fantastic high-profile investment for Wales and a great boost for our automotive sector.
"TVR is another iconic and much-loved, world-class brand that still commands a strong and loyal international following.
"I am delighted the next generation of TVRs will proudly bear the label 'made in Wales'.
"Today's news follows hot on the heels of the Aston Martin announcement and sends out a strong, clear message that Wales is the location of choice for advanced manufacturing."
TVR has already secured more than 350 orders for its newly launched car which features F1 inspired technology.
The chassis and body has been designed by Gordon Murray of Gordon Murray Design and it will be manufactured using its iStream assembly process.
It will be powered by a Cosworth tuned and enhanced V8 engine.
