A Bradford precision engineering factory that was nearly closed down four years ago has fought off global competition to win a major jobs-boosting contract with Jaguar Land Rover that will see its products exported around the world.

Simon Spencer, head of the Bradford Borg Warner turbocharger plant where around 130 skilled jobs will be added, also hopes that its first move into producing components for petrol engines will attract other car makers leading to further expansion and more jobs .

Jaguar Land Rover purchasing director Rob Johnson said the US-owned Borg Warner plant on the Euroway industrial estate was chosen to produce turbochargers for the company's new range of car engines after beating international competitors with its quality standards, skills and pricing .

Mr Johnson, who was in Bradford for the formal launch of the new multi-million pound deal, said: “We awarded the contract to Borg Warner Bradford following a rigorous tendering process involving several international manufacturers.

“It was closely assessed for factors such as its manufacturing quality, production processes and price competitiveness. It was an exacting process and we are delighted to be sourcing components from a UK supplier for a new generation of petrol engines for a new Jaguar Land Rover range. This is not only a good deal for Borg Warner Bradford, which is part of a global leader in turbocharger technology, but also for the UK as a whole.”

Mr Spencer, Borg Warner UK managing director, said the contract to supply JLR’s new engine plant near Wolverhampton had opened up a new market for the company, which to date has made turbochargers only for commercial vehicle diesel engines.

He said: “The Jaguar Land Rover contract will see us install world class automated production lines to supply the new engine plant. It will mean around 85 per cent of our products being exported around the world, which is exactly what the Government wants to see UK manufacturers doing.

“By extending our product range and technology into petrol engines, I would also hope that other automotive companies will turn to us to supply them too.”

Borg Warner will use part of an 85,000 sq m building next to its existing factory, which employs 420 people, to produce the JLR turbochargers.

It will also include a new engineering centre for design, simulation, testing and validation as well as metallurgical laboratories. It has been supported by a £2.3 million grant from the Government’s Regional Growth Fund, which supports projects that create economic growth and sustainable employment.

Coun David Green, leader of Bradford Council, said: “We’re marketing Bradford as a producer city where things are designed and made and this is a brilliant example of that. The Council is always willing to work with firms that are creating jobs, either through our new city centre Growth Zone initiative or through public private partnerships.”