Staff are being transferred to Whitley - four miles away

The company, which has been there for more than 50 years, is selling the site in a multi-million pound deal to construction suppliers Delamar.

A spokesman for Delamar said it was confident its planned new production site would create 2,000 new jobs.

Meanwhile, Jaguar has announced it is creating a new science and business park at Whitley and transferring work from Browns Lane to the new site.

About 500 people are currently employed at Browns Lane which is mainly used for Jaguar's wood veneering service.

'Win-win'

A Jaguar spokesman said a new veneer manufacturing service created at Whitley will supply Aston Martin, Jaguar and Land Rover.

A customer care centre for Ford, Jaguar and Land Rover will also be developed at the site, bringing in another 130 jobs.

They have demonstrated great support for the people of Coventry Council leader Ken Taylor

Geoff Polites, chief executive for Jaguar and Land Rover, called the transfer a "win-win" situation.

"It's a win for Coventry because Browns Lane will remain a key manufacturing location and will create many new jobs for the area.

"It's a win for Whitley because hundreds of skilled new jobs and new technologies will come to the new science and business park, not only for Jaguar but for other potential employers as well.

"And it's a win for Jaguar because it takes us another important step forward in our business recovery."

Coventry City Council has welcomed the news and congratulated the firm for its efforts.

Council leader Ken Taylor said: "They have demonstrated great support for the people of Coventry by encouraging the return of manufacturing jobs to Browns Lane and the joint development of the science and business park."

A Delamar spokesman said he was confident a new manufacturing facility at Browns Lane would create 2,000 new jobs.