Ashwoods Automotive www.ashwoods.org is to open a new manufacturing facility after receiving a grant worth £1.17 million from the Regional Growth Fund (RGF).

The Exeter-based engineering company, which develops hybrid and electrical vehicles and components, expects that the new facility will create 51 jobs over the next three years.

Managing director Mark Roberts said: “We have experienced a 10-fold growth since 2009, and the new grant will ensure that we can keep pace with the increasing demand for our products.

The purpose-built manufacturing facilities will be essential for our continued growth, as we transform into a credible high-volume Tier One supplier of electric motors to the global automotive and off-highway sectors.”

A total of 14 South West companies benefitted from the sixth round of the RGF.

AB Dynamics received a £2 million grant that will be used to construct a new facility and to expand its workforce. Other companies to make successful bids include Plessey Semiconductors and Hymec Aerospace (UK).