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Lotus awarded £10 million jobs grant

British car maker, Lotus, has been handed a Government Regional Growth Fund grant of more than £10 million to create 300 jobs. The newly created jobs will focus on an increased production capability and development activities around the creation of a new Lotus model line up. Chief executive of Lotus, Aslam Farikullah, welcomed the news, saying: "This grant is part of a wider strategy for Lotus created to ensure we thrive and grow.

British car maker, Lotus, has been handed a Government Regional Growth Fund grant of more than £10 million to create 300 jobs. The newly created jobs will focus on an increased production capability and development activities around the creation of a new Lotus model line up. Chief executive of Lotus, Aslam Farikullah, welcomed the news, saying: "This grant is part of a wider strategy for Lotus created to ensure we thrive and grow. We are responding to increased global demand for our cars and engineering consultancy services and this grant will help to position Lotus at the forefront of global automotive innovation. We have very exciting plans for our sports cars and it's a very positive move for Lotus that we're in a position to create new jobs and to significantly contribute to Britain's automotive industry."

The government's Regional Growth Fund (RGF) is focused on a £3.2 billion pot of grant money that is available to projects that use private sector investment to increase sustainable jobs and economic growth outside London. The £10.44 million grant was formally announced by Business Secretary, Vince Cable, on a visit to Lotus' Norfolk HQ. He said: "The car industry is one of Britain's great success stories, employing over 130,000 people and helping to build a stronger economy by contributing £11 billion a year. The Government's industrial strategy is working and giving business the confidence to invest, creating more high skilled, long term jobs in the UK. The Government has already supported over 400 projects with £2.6billion from the Regional Growth Fund, promoting growth in regions across England. The latest round is still open for another two weeks and I'd urge all businesses with a plan to support jobs in their local areas to apply,"

The RGF grant comes on top of significant private investment from Lotus' new owners, DRB-HICOM. The Malaysian company injected £100 million of new funding into Lotus earlier this year. The money is intended to boost Lotus' productivity, quality, engineering and efficiency. The Malaysian company acquired Lotus in January 2012, when it bought over Lotus, parent company, Proton. The deal did not include the Lotus Formula 1 team, which is owned separately. The F1 team uses the Lotus name as part of a licensing agreement.

DRB-HICOM is a major player in Malaysia, where it assembles cars for the likes of Volkswagen, Mercedes and Honda. With revenues in excess of £1 billion, the company also has major interests in property, infrastructure and services.

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