Jaguar Land Rover is expected to announce Monday a plan to set up a £400m engine plant in the Midlands, creating more than 2,000 jobs, involving millions of pounds in investment in the supply chain.

The plant is on the lines of the government's recent pledge to strengthen JLR's investment with £10 million in financial support, reported The Telegraph.

The new plant will be set up at the i54 Business Park in Wolverhampton, a business enterprise region. The plant will take about two years to build.

Once completed, the factory may hire 2,000 workers and provide an additional 1,200 jobs in the supply chain segment.

The launch of the plant is also seen as an important political score for the coalition government, which is struggling to combat the financial crunch and is seeking to revamp the economy by enhancing manufacturing and reducing its reliability on the banking sector.

The new plant will also mark progress for JLR since it was acquired by the Indian giant Tata Motors in 2008. JLR's engines are presently supplied by Ford's Bridgend and Dagenham plants. But the car manufacturer is seeking to take control of its supply chain.

Britain seems to be regaining its job market gradually. Earlier, Europe's leading home improvement retailer, Kingfisher, has announced that it will create more than 1,200 jobs across the UK this year, in its B&Q and Screwfix operations.