Wiltshire auto parts firm DTR VMS Ltd is moving its headquarters to Trowbridge and investing £12.7 million in a new research centre, creating 21 new jobs.

The firm is currently based in Chippenham but has outgrown its site at the Bumpers Farm Industrial Estate and is looking to expand elsewhere.

The new high-tech facilities will occupy the former Trelleborg unit in the White Horse Business Park, and are expected to be up and running from May next year.

It is also intended to become the European logistics hub of the firm’s Korean parent company DTR.

The firm, which manufactures products addressing noise, vibration and comfort in vehicles, has safeguarded the jobs of its 187 existing staff.

Operations manager Mike Franklin said: “Our lease at Bumpers Farm is due to run out in March 2014, the site is not big enough for our needs any more.

“We’ve been looking for a suitable site for the last couple of years, and we’re delighted that we’ve found it, we are very pleased with our new premises in Trowbridge.

“This move will be great news for the company, we will be able to expand and take on new employees while safeguarding existing jobs.”

The move was welcomed by Wessex Chambers chief executive Rob Perks, who said: “It is a bit of a knock for Chippenham, and Bumpers Farm in particular, but great news for Trowbridge.

“The White Horse park has lost a few big companies in the last few years, and we are delighted that this fairly major employer is remaining in Wiltshire.

“And it is good news for the employees that they will keep their jobs, although it means there will be fewer in Trowbridge, but I expect there will be more going forwards.

“Overall it is a good news story all round.”

The firm was visited by Business Minister Mark Prisk last week, having secured £3.1 million from the Government’s Regional Growth Fund.

“It’s a real pleasure to visit this dynamic company,” he said.

“Their new site makes sustainable use of brownfield land and will allow their highly technical business to develop and grow.

“The fund is all about helping local people unlock growth in their area and give a real boost to the economy.”

The Regional Growth Fund, worth £2.4bn, supports projects and programmes that lever private sector investment creating economic growth and sustainable employment.