However, JLR’s announcement about its UK operations angered the Unite union.

As well as the closure of the West Midlands plant, the company is also planning to close its final salary pension scheme to new entrants from next April and switch them to a defined contribution scheme, a move already made by many leading UK companies.

Virtually all of JLR’s employees belong to the final salary scheme.

The firm employs 14,500 workers at its three manufacturing plants in Halewood, Solihull and Castle Bromwich as well as other sites including engineering and research centres in Gaydon and Whitley, in the West Midlands.

Unite national secretary for the automotive sector, Dave Osborne, said: “Earlier this year, this company and our union agreed a framework agreement intended to support JLR through this tough economic period.

“Our members said then that JLR could not be trusted to uphold that agreement. Today this has proven to be true.

“While Unite welcomes moves to ‘green’ the JLR product range, Unite is deeply concerned that an agreement struck with the union barely six months ago will not now be upheld and that the company is seeking to close the final salary pension scheme.

“In April, our members agreed to changes to terms and conditions of their employment in order to give the company financial security, but, like Oliver Twist, they are coming back for more.”

Unite officials will meet to discuss the details of the announcement. Earlier this year, the Government gave JLR funding of £27m to develop green automotive technology.

Yesterday, Business Secretary Lord Mandelson said: “Confirmation that the LRX is to be built at Halewood will help to end the uncertainty at the plant. It’s a testament to the workforce who have made the plant one of the most productive in Europe.” Garston Labour MP Maria Eagle said: “This is great news for Halewood, and I hope this is the beginning of the end of the recession for Jaguar Land Rover.”