World-class motorcycle manufacturer Harley-Davidson is to set up its European headquarters on the Oxford Business Park.

The US company will move into a specially constructed building on the site of the former car works early next year.

The company, which is amalgamating two of its divisions based in Brackley and Windsor, will bring 65 staff to the Arlington site. John Russell, managing director of Harley-Davidson Europe, said: "The Oxford Business Park offers exactly the right environment for our company as we increase our focus on the European market.

"The location, the facilities, infrastructure and, above all, the responsive design team were all factors we considered when deciding to relocate." The company is taking a pre-let on a 32,137 sq ft building. Construction is due to start in June and is expected to be finished by 2002.

Jim Johnston, sales director of Arlington Property Developments, said: "We are delighted to welcome Harley-Davidson.

"Its presence represents a return to the site of a state- of-the-art motor-based company.

"It joins a number of high-profile firms that have recently relocated to participate in our proven success." Arlington's agents are Strutt & Parker and Harley-Davidson were represented by Campsie Commercial.

The move by Harley-Davidson is the latest high-profile move on the growing park. In the past 12 months, electronics parts firm Electrocomponents expanded its UK headquarters and market research company Frost & Sullivan, previously based in London, extended its operations. IT specialist CSW Informatics moved from the city centre, and Watson's Water a subsidiary of Hong Kong-based Hutchison Whampoa took space at Chancellor Court.