Manufacturing giant JCB has unveiled plans to create 2,500 jobs as part of £150m expansion.

The firm, which is most famous for its iconic yellow diggers, announced the news as Chancellor George Osborne visited the company's world headquarters in Rocester.

JCB said it will build a factory in Uttoxeter and construct an excavator manufacturing plant in Cheadle.

Osborne is expected to congratulate the firm in a speech on selling its one millionth vehicle.

Lord Bramford, the company's chairman and major Tory donor, will show the chancellor around the plant.

The visit follows the chancellor's announced in the Autumn Statement that the government is to invest in a major road improvement on the A50, which runs through Uttoxeter.

"The chancellor's decision to invest in the regional infrastructure means JCB can continue to invest locally, which is good for Staffordshire and good for Britain, especially given the wider benefits to our UK supply chain," said Bramford.

JCB said its £150m ($244m, €179m) plan also includes a new factory in Cheadle, Staffordshire which will be built subject to planning consent.

The firm explained the new jobs will come by 2018 and the firm will create a new in-house training facility for its staff, which will work with universities to boost manufacturing skills.