One of Bradford's biggest engineering companies is set to significantly expand its operations into new product areas and create more jobs as it makes a strong recovery from the recession.

The multi-million pound investment by US-owned turbocharger manufacturer Borg Warner at its site on the Euroway trading estate will create about 130 new jobs, from apprentices to highly skilled engineers and research and development staff – and boost Bradford's 'Producer City' campaign.

The new investment has been hailed by Bradford Council leader, Councillor David Green, as 'a great partnership' between Borg Warner and the Council, which has worked closely with the company to secure the deal.

Borg Warner's plans come after it clinched a major deal to supply turbochargers to Jaguar Land Rover's new engine manufacturing centre near Wolverhampton, due to open in 2015 for a new range of four-cylinder petrol and diesel engines.

It will be the first time Borg Warner Bradford, which has operated for 35 years and employs 450 people, has made components for passenger cars as well as commercial vehicles.

Borg Warner plans to expand its Bradford production lines and build a new engineering centre in the 85,000 sq ft building next to its main factory on Roydsdale Way, which also houses a new research and development centre. .

Borg Warner is also strengthening its close collaboration with the University of Huddersfield by establishing a master’s degree programme in turbocharger engineering.

Frederic Lissalde, president and general manager, Borg Warner Turbo Systems, said: “With our investment in local production and testing, Borg Warner will provide Jaguar Land Rover with fast-to-market, high-quality advanced technologies adapted to their specific needs.

“Borg Warner’s investment in innovation will also help support the local economy with highly skilled engineering and manufacturing jobs, and our increased collaboration with the university will help develop the talent needed to drive turbocharging advancements for the future.”

Ian Harnett, Jaguar Land Rover's purchasing director, said: "Jaguar Land Rover remains committed to enhancing and developing the automotive supply chain in the UK. This contract is a great example of how we want to work in partnership with our supply chain to develop innovative solutions to support future growth.

"We are delighted that this contract will not only create high value manufacturing and engineering jobs in West Yorkshire but will support Borg Warner's collaboration with the University of Huddersfield.

“This will ultimately help the UK become even more competitive as it is investment in innovation that will make the difference to the growth in the UK economy."

The new Bradford engineering centre will provide application engineering, design, simulation, testing and validation as well as metallurgical laboratories.

It has been supported by a grant from the Government’s Regional Growth Fund , which supports projects that leverage private sector investment to create economic growth and sustainable employment .

Coun Green said: "This announcement is the result of a close working partnership between the Council and Borg Warner over several months.

“We expect further details of the development to be announced in due course but clearly it will boost innovative manufacturing in Bradford as well as creating jobs. It is excellent news for the city."

To date, Borg Warner Bradford has exported most of its output to a range of commercial vehicle manufacturers in Europe and increasied exports to Brazil, Russia, India and China.

Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN.

Borg Warner has also installed a new production line in Bradford to make turbochargers for a new low emission engine for construction machinery maker JCB.

Since 2011, the company has worked with the University of Huddersfield on a Knowledge Transfer Partnership to research improvements in materials for turbocharger housings. The new master’s degree programme will enable students to specialize in an advanced technology to improve fuel economy, reduce emissions and enhance performance for passenger cars and commercial vehicles.