US-based Dana (www.dana.com), which recently agreed to buy GKN’s Driveline business, is to invest £21 million in its Birmingham operation after winning a new contract with Jaguar Land Rover to supply front and rear axles for its next generation of ‘luxury’ vehicles.

Dana, which employs more than 300 people at its Witton (Birmingham) factory, said the estimated value of the work is more than £300 million.

James Kamsickas, Dana president and chief executive, said: “We are proud to be a trusted long-term partner with Jaguar Land Rover. These new contracts are a testament to our commitment to engineering and our ability to meet the demands of the market.”