Plymouth's Princess Yachts receives government funding
A Devon-based luxury yacht company has been awarded part of a £1.4bn government fund to encourage enterprise and jobs.
Princess Yachts, based at Devonport dockyard, in Plymouth, said it wanted to use the money to create a "world leading" boat building facility.
The company said the investment would help create more than 1,000 jobs.
The Regional Growth Fund (RGF) aims to support projects which will create economic growth and employment.
The new production site, which received planning permission from Plymouth City Council last year, will be used to build Princess M Class yachts which are about 100ft (30m) in length.
'Local success story'
It is hoped the new facility will be operational by 2013.
Managing Director Chris Gates said: "I am delighted that the government has decided to back our investment in a new production facility to meet the global demand for larger vessels."
Princess Yachts is Plymouth's second largest private sector employer, employing just under 2,000 people.
Vivien Pengelly, leader of the city council, said the company was a "local success story" and the "ambitious plans" would "create a focus for excellence in marine engineering".