By Jonathan Davies

Jaguar Land Rover has agreed has agreed a deal that will production of future vehicles moved to Austria, with its UK plants at capacity.

The deal with Magna Steyr, part of the Magna International group, will see some vehicles produced in the Austrian city of Graz.

Jaguar Land Rover said the deal would help it to create the additional volume needed to continue on its growth plans.

Dr. Ralf Speth, Jaguar Land Rover's CEO, said: "The UK remains at the centre of our design, engineering and manufacturing capabilities. Partnerships such as this will complement our UK operations and engineering.

"Today marks another step in building our global footprint. This agreement will allow us to expand our award-winning model range as customers around the world demand ever-more innovative vehicles from Jaguar Land Rover."

"The signing of this contract with Jaguar Land Rover reflects the trust in our capability and heritage as a vehicle contract manufacturer," said Günther Apfalter, President Magna Steyr and Magna International Europe.

"The partnership with Jaguar Land Rover brings a new customer to our Graz plant. As always, we will work with our fullest commitment and dedication to ensure that we meet our customer's high expectations."