A Plymouth-based yacht company hopes to build a £35m factory at Devonport Dockyard, which could create or secure 1,000 jobs, the company has said.
Princess Yachts International has applied for between £4-5m of government funding to build the factory.
The company said it hoped to open the building to meet the growing global demand for yachts.
If commissioned, the factory was expected to open before the end of 2012, the firm said.
Princess Yachts managing director Chris Gates said: "We already have a superbly skilled workforce in Plymouth and we now need to ensure that we can put in place the facilities for the next chapter in the Princess story."
The company said it had applied for the money from the Government's Regional Growth Fund.
The plans were approved by Plymouth City Council in 2010.
