A cash injection of 230m is being pumped into the Cowley car plant in Oxford as it gears up to produce the new Mini, writes David Duffy.

The huge investment will double the factory's production capacity and could lead to a long-term jobs boost. BMW says the investment will make it possible to build other cars at the plant.

The news was welcomed by Phil Jenkins, operations manager at the Templars Square shopping centre in Cowley. He said: "Yippee! It's certainly good news as far as we are concerned. We are right in the heart of Cowley and the sooner this happens the better."

Jock Coats, vice-chairman of Oxford City Council's economic development committee, said: "It is obviously good news and more than I was expecting. It shows a vote of confidence in the Oxford workforce and in the local economy's ability to support them.

"This indicates BMW is looking beyond the Mini, which can only be a good thing." Dr Herbert Diess, BMW's managing director at Cowley, said: "The Mini will be built here using the latest technology and to BMW's stringent quality and production standards.

"Our employees have already shown with the Rover 75 that they are capable of delivering this quality.

"We have successfully completed the first challenge and I am positive that together with our suppliers and the support of the whole BMW Group we can fulfil the high expectations for the launch of the Mini." The Rover 75 line has been dismantled and moved to the Phoenix Consortium's Longbridge plant. Equipment to make the new Mini was shipped from the Rover plant to Oxford. The equipment is ready to be installed when the 2,500-strong Cowley workforce, which has been on an extended nine-week summer break, returns to work on Monday.

BMW has invested 280m in recent years to modernise the Cowley plant.

The new 230m investment is for the launch of Mini production next summer. BMW aims to eventually build 100,000 Minis a year at the plant.