Warwick Eagle soaring after government manufacturing award

The money- which will save some jobs and create new ones - will be used to build a range of low-emission and fuel efficient vehicles for waste collection.

Dennis Eagle’s main manufacturing base is on the Heathcote Industrial Estate where it employs 554 of its 600-strong workforce making the bodies and chasis for the trucks.

The cabs are assembled in Blackpool.

In recent years the Warwick company became part of the Spanish multi-national group, Ros Roca.

Group managing director Mike Molesworth said: “We are delighted by this announcement.

“This funding will enable Dennis Eagle and its consortium partners to pursue an important project to bring an innovative vehicle concept to the market over the next three to four years.

“This will result in a boost to jobs both at Dennis Eagle and in the supply chain.

“We would like to thank the consortium members for their support and look forward to delivering a project together that boosts manufacturing and export for Britain in the future.”

Warwick and Leamington MP Chris White was among those who helped secure the Government grant, which he believes will have a significant effect on the local economy.

Mr White said: “The grant has been approved under the Advanced Manufacturing Supply Chain Initiative - a Government scheme to promote ‘re-shoring’ - the return of production and jobs to the UK.

“This new project to create fuel-efficient refuse vehicles is expected to create 52 jobs while safeguarding another 32 across the supply chain.”

Mr White added: “I was extremely proud to champion the efforts of the company in the House of Commons last week and believe that such an example shows that manufacturing in our area can be a huge success.”

The Leader of the House of Commons, Andrew Lansley MP, joined Mr White in paying tribute to the success of Dennis Eagle. He said the company had proved the merits of bringing production back to the UK.