One of China's largest car makers is set to create about 200 jobs in Nottingham.
Changan Automobiles is setting up a research and development centre at the Science Park on University Boulevard.
The East Midlands Development Agency (Emda) said attracting a firm which makes about 2.5 million cars a year was "fantastic news" for the region.
The centre, which will focus on research into new energy and hybrid vehicles, should be fully open by 2013.
Emda said it had been instrumental in securing Changan's commitment to Nottingham after sending its chairman there three years ago.
Bryan Jackson, chairman of Emda, said: "This announcement is fantastic news for the East Midlands.
"Changan Automobile has chosen to locate here because of the research expertise of our universities, the reputation of the world class automotive engineering firms based in the region and the high quality workforce.
"Changan will be creating over 200 research jobs and opportunities for UK automotive companies to do business with Changan, further establishing the region's reputation as a location for innovative, high technology companies."
The company - which also trades as Chana - reported a turnover of about £6bn in 2009.
It already has two overseas research centres in Italy and Japan.