Luxury sports car maker Aston Martin is pumping 5m into its factories in the biggest single investment in the company's history.

The firm's base at Bloxham, near Banbury, which builds the best-selling Aston Martin DB7, is being extended to cope with worldwide demand for the 80,000 sportster.

The extended plant, which will increase the production area by 50 per cent, is due to be completed by October. Ken Giles, managing director of Aston Martin, said: "This year we are on course to establish all-time sales and production records for Aston Martin.

"For the first time we are expecting to produce 1,000 new Aston Martins. We have ambitious new plans for the years ahead, so it is vital that we invest in our future to ensure that we will be able to maintain and improve on the unique, individual service and attention which we will continue to provide to our customers."

As well as the extension to the production area, Aston Martin is restoring 350-year-old stone farm buildings and an 18th-century four-storey water mill at the Bloxham site to provide a training college for dealers. It will also provide extra office space for Aston Martin's supply and finance staff.

All the exposed oak roof and floor beams in the mill will be restored and the 15ft diameter wheel returned to working order.

The firm is planting 10,000 trees and shrubs and creating a one-acre wild flower meadow to enhance the area around the Bloxham site.

Work has been carried out on new production, paint, trim and quality control areas at the company's Newport Pagnell site.