AFP - Iconic carmaker Jaguar Land Rover, owned by Indian group Tata Motors, will close one of its factories in central England over the next decade but create 800 jobs elsewhere, it said on Thursday.

Jaguar Land Rover, bought by Tata for 2.3 billion dollars last year, unveiled a new business plan designed to increase global competitiveness and drive growth amid tumbling car demand in the global downturn.

The group said it will decide next year whether to close a factory at Castle Bromwich in the West Midlands, which produces Jaguars, or a site in nearby Solihull that makes Land Rovers.

"The plan includes decisive actions to see through the next 12-18 months as markets recover and positions the company to grow and prosper in the future," Jaguar Land Rover said in a statement.

"It includes a new and expanded range of products and environmental technology, delivered through streamlined and competitive costs and a new manufacturing strategy."

Jaguar Land Rover said it would also create up to 800 jobs in Halewood, Merseyside, northwestern England, to produce a new Range Rover model.