CHIPPENHAM business Dymag has been awarded a government grant and loan package of over £7 million, which could create 263 jobs.

Dymag, based in Bumpers Farm, is to receive a £3.3 million grant and a loan of £3.8 million as part of a £11.2 million project they are leading with M Wright and Son and the National Composite Centre.

The project aims to combine composite technology and process engineering to produce affordable solutions for the mass production of automotive wheels.

Dymag’s chief executive Chris Shelley said: “There was stiff competition to win this investment so I am delighted that Dymag has been successful in protecting current jobs and will potentially create up to 263 new jobs over the next five years.

“The funding will enable us to greatly accelerate our development programme to improve the manufacturing process and ultimately mass produce high quality carbon composite wheels for the global automotive industry.”

A key condition of receiving the award is that the company provides match funding. Mr Shelley said they were now completing a financial investment round that would enable them to do that.

Dymag is one of 20 projects given conditional offers for the Advanced Manufacturing Supply Chain Initiative, which will benefit from a total of £67 million of government investment.

The successful projects were announced yesterday by business Secretary Vince Cable, who said: “While there is much to celebrate about British manufacturing, it is clear that our supplier base has been eroded over the last thirty years. Reversing this will boost exports and help safeguard UK jobs.

"Our targeted interventions have helped revive the great British manufacturing sector.

“The benefits of stronger manufacturing supply chains will be felt across the whole economy – new cutting-edge technologies, a more highly skilled work force and improved productivity will boost growth and jobs across the country.

“The ultra-lightweight wheels project will deliver sizeable benefits to the manufacturing supply chain in Wiltshire, boosting local jobs, and that is why I'm pleased to award it funding.”

The news was welcomed by Chippenham MP Duncan Hames, who said: “Advanced engineering has long been key to our area’s economic success, and will continue to be so in the future.

“I’m delighted that the Coalition Government is providing the funding Dymag needs to realise its ambitious plans which will create high quality jobs and opportunities for young engineers and apprentices in our local area, helping to build a stronger economy here.”