Plans to create almost 1,000 Jobs in north Oxfordshire were unveiled yesterday, thanks to a triple boost for the county’s economy.

Motorsport firm Prodrive said it would double in size after announcing a move to the former Hella Manufacturing factory in Banbury’s Southam Road.

The firm, which is behind the new Mini world rally team, said it would increase the number of employees from 450 to 700 within three years.

The move will free up the site of its current headquarters in Wildmere Road, Banbury, which will be transformed into a new retail park.

The Oxford Mail has learned the park could be anchored by a Marks & Spencer store with a potential 500 extra jobs heading to the county.

Meanwhile, hi-tech firm Goodrich CTG also revealed work has started on a new multi-million-pound centre of excellence which will lead to more than 250 jobs being created in the next five to 10 years.

A month ago the announcement of the Science Vale UK project was predicted to bring 8,400 jobs to south Oxfordshire by 2016.

Prodrive chairman David Richards said: “This is good news. Three years ago, when we lost the Subaru (world rally) contract, I never dreamed I would make an announcement like this.”

He said there would be considerable further growth in the company’s motorsport and hi-tech business. In 2010, it turned over £36m in the UK. That is expected to increase to £65m this year and £90m in 2012.

Mr Richards added: “We have totally outgrown our current site and this is severely hindering our ability to grow.”

Tim Walton, of London surveyors LXB Properties, which is overseeing the development of the Prodrive site, said: “We expect to hold a public exhibition at the end of October and submit a planning application to Cherwell District Council in November.

“A 2010 survey found as many as 41 per cent of Banbury residents now do their shopping elsewhere.

“Our plan is to turn the site into a destination that will draw shoppers from far afield as well as to increase the number of major brands.”

Mr Richards said he had been looking for a suitable site for years, before finding one on his doorstep.

He said: “The challenge was that there seemed to be no obvious site of the appropriate scale in Banbury, where I very much wanted to stay.”

Mr Richards reckoned bringing the Hella factory, now an empty shell, up to Prodrive standards would cost more than £10m.

Banbury has suffered job losses in recent years.

Hella axed 450 jobs in 2006 and last year 400 jobs disappeared at Vodafone, while cuts are also being made at Cherwell District Council.

Goodrich CTG is building a £14m centre of excellence designed to accommodate a rapidly growing workforce.

Bosses said the building at the Network M40 business park in Banbury would allow the company’s five existing sites to be reduced to two and the new 137,000sq ft building would be able to accommodate a workforce expected to grow from 185 currently to 450 in the next 10 years.

The firm specialises in the design and manufacture of high-performance composite materials for the aerospace, medical and motorsport industries, including F1 cars.

Managing director Dominic Cartwright said: “The new development not only makes our operations more streamlined and effective, it also helps us build for the future.”

The UK Composite Centre of Excellence, as it will be called, is due to be completed next July.

Nigel Wild, president of the Oxfordshire Chamber of Commerce, said: “These announcements reflect the strength of the hi-tech sector in Oxfordshire. So many people have expertise in this area and that in itself attracts other major employers.

“The news about the retail park is also welcome as the sector has been suffering recently.”

l Jobs are to go at building firm Stewart Milne Timber Systems.

Bosses at the company, which employs about 115 staff at the Curbridge Business Park, in Witney, said 40 redundancies would be made nationwide. It is not clear how many Witney staff will be affected.