Jaguar Land Rover (JLR) has announced that it will spend an extra £1bn with UK suppliers over the next four years, a direct result of the popularity of the new Range Rover Evoque.

The investment is on top of the £2bn worth of supply contracts it has already awarded to over 40 UK parts suppliers, which it announced a year ago.

JLR clearly took a cautious view of demand for the Evoque's when it began production last year at its Halewood plant, in Merseyside. It thought it might have a smash-hit on its hands, but it refused to commit to an expensive expansion until it was sure the demand was there. However, actual orders have surpassed even JLR's most ambitious expectations.

Some of the extra billion will go into operating a new purpose-made logistics facility in Ellesmere Port, which will open in summer "to support the global sales success of both the Evoque and Land Rover Freelander 2," according to a JLR statement today.

Logistics company DHL will manage the new site when it opens, which is where the 300 extra jobs will go.

JLR CEO Dr Ralf Speth said: "Today's announcements demonstrate JLR's strong products and clear ambition for continued growth. The demand we have seen across the globe for the Range Rover Evoque means we are able to significantly increase what we spend with our suppliers, which is great news for the UK economy, and the thousands of jobs JLR supports in its supply chain. "