London, Sep 24 - Tata Motors-owned Jaguar Land Rover Thursday announced plans to close one of its factories in Britain but said there will be no compulsory redundancies.

The company said it will close a plant at either Solihull or Castle Bromwich in west central England, but will combine production at a site to be decided next year.

However, JLR said up to 800 new jobs will be created at its Halewood plant in Liverpool.

In an announcement welcomed by the British government, the company also said it will go ahead with the manufacture of the new 'baby Range Rover', the long-awaited LRX, which will be available in car showrooms in 2011.

British Business Secretary Lord Peter Mandelson said: 'Today's announcement of Jaguar Land Rover's business plan shows how focused it is on the future of the industry and the opportunities available as we move to a low-carbon future.

'Confirmation that the LRX is to be built at Halewood will help to end the uncertainty at the plant with the added prospect of some new jobs in the pipeline.'

JLR employs around 5,000 workers in Solihull, 2,000 in Castle Bromwich and 1,800 at Halewood.