JCB have announced plans to invest £150 million to expand its operations in Staffordshire and create 2,500 jobs by 2018.
Chancellor George Osborne's visit to the JCB's factory in Rocester, Staffordshire, on Friday, coincided with the announcement.
His tour at the factory came the day after he delivered his Autumn Statement, in which he committed Government funding to unlock economic growth in Staffordshire with a major road improvement project on the A50 trunk road in Uttoxeter.
The Chancellor was hosted by JCB chairman Lord Bamford, who confirmed the five-year investment plans for Staffordshire as part of a wider global growth strategy to expand sales and increase market share.
The £150 million plans, which represent the single largest investment in JCB's history, include a new factory for JCB Cab Systems in Beamhurst, near Uttoxeter, to replace the current smaller facility in Rugeley.
A brand-new factory on the Harewood Industrial Estate in Cheadle, Staffordshire, will also be built - subject to planning consent.
On Friday, Mr Osborne told staff JCB was a "big part of the UK's economic plans".
He told assembled employees: "Britain is moving again and it's thanks to you."
Mr Osborne said work to improve the A50 around Uttoxeter, announced this week, had "unlocked" the potential for new jobs at JCB.
He said the 2,500 new jobs were "a vote of confidence" in the UK given that the company had other sites it could have expanded in places like Brazil and India.
He added: "I think this shows our economic plan is working. These jobs are an investment in Britain's future.
"It shows we have a responsible economic plan as well. We don't want to make the same mistakes of the past and put all our bets on the city of London.
"We want to see great business growth in the midlands, the north."
Lord Bamford said: "The Chancellor's announcement of the major A50 road improvement project is good news for businesses in this area. It allows companies like JCB to plan ahead with confidence, knowing that the road network will not constrain business growth and future investment.
"Our plan to create 2,500 high-quality manufacturing jobs locally is clear evidence of the important link between infrastructure improvement and job creation.
"The Chancellor's decision to invest in the regional infrastructure means JCB can continue to invest locally, which is good for Staffordshire and good for Britain, especially given the wider benefits to our UK supply chain."
Lord Bamford said the growth would also make for more jobs in JCB's Derby supply chain but said he could not put a figure on this.
He said JCB still would have invested at its Rocester site without the A50 work.
But he said this "probably wouldn't have been as quick or in quite the same way".
Asked if the new jobs would be full-time or agency staff, Lord Bamford said: "All the time we are looking at changing agency workers to permanent employees and shortly I think there will be an announcement of a further tranche of agency workers becoming full time."
