After winning a contract to produce parts for Jaguar Land Rover, Magal Engineering secured the loan supplied by Finance Birmingham.

The £1 million will fund additional staff and the necessary tools needed to enable the company to deliver the Jaguar contract.

CEO, Gamil Magal, said: “This is a new step forward for Magal, which will help us to realise our future as an integral part of the UK’s growing automotive sector.”

The loan was secured from the national £24 million Tooling Funding Programme, which is part of the Government’s Regional Growth Fund that helps guarantee the future of local firms and their employees.

Reading East MP, Rob Wilson, visited Magal’s site in Woodley to see how the Tooling Funding Programme has benefited the company.

He said: “My tour of Magal has shown how the firm will build on this success and continue to work with major companies from across the globe.”

According to the Society of Motor Manufacturers and Traders (SMMT), the Government has identified a £3 billion opportunity for domestic suppliers to provide parts to UK-based vehicle manufacturers.

Tooling investment director at Finance Birmingham, Steve Hetherington, assisted Magal in its bid for the loan.

He said: “Magal’s new contract with Jaguar highlights how expertise within the automotive supply chain is winning work and creating new jobs.”

With the UK’s automotive industry gaining momentum, Mr Hetherington hopes that the Tooling Funding Programme will continue to help many more companies achieve similar goals.