Production of an engine which will kick start the rebirth of a legendary name in motorcycling history has started at a West Oxfordshire factory.

Menard Competition Technologies (MCT) has signed an agreement to produce the engine for the relaunched Norton motorcycle at its Leafield plant.

It is expected that up to 500 units a year will be built at the factory for Norton which has been re-established at Donington Park, near Derby by entrepreneur Stuart Garner who bought it back from American ownership.

Charlie Bamber, commercial director of MCT, said: “It’s a great privilege to be playing a role in the rebirth of a brand as important as Norton. We share in the passion and ambition of Norton and know that Stuart and his team are well-placed to build on the legacy of a truly iconic name.”

The deal, for an undisclosed sum, comes follows a period of research and development of the power plant by MCT and will focus on the new motorcycle, a 961/SS Commando. There are plans to race the machine at the Isle of Man TT, where Norton historically enjoyed considerable success.

MCT, which employs 57 workers, grew out of Menard Engineering, which took over the former TWR factory, run by Tom Walkinshaw, in 2003.

Stuart Garner, managing director of Norton, said: “This is great news — not just for Norton and for MCT but for the wider UK motorcycle industry. MCT is one of the world leaders in engine development and the partnership will give us further credibility, as we roll out our Commando range.”

He continued: “With funding, premises and one of the most talented senior management teams in the motorcycle industry now in place, we’re looking forward to the next chapter of the Norton story.

“Thousands of people have already expressed serious interest in Norton and we’re confident that together with MCT, we can deliver a product that is both true to the heritage of the Norton brand, while benefiting directly from the latest technological innovation.”

Mr Garner has set up the company at new headquarters in Donington Park, and also bought back all the trademarks and development work relating to the Norton, Manx, Atlas, Commando, and Dominator brands.

Other projects it has been involved in include the development of an engine for the Bloodhound car, which is being lined up to break the world land speed record in 2011, and providing the engines for the Superleague series of racing cars, which was launched last year.