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LONDON (Reuters) - Britain's biggest carmaker Jaguar Land Rover (JLR)
JLR said its three British plants were either full or at near capacity but the decision will spark fears the firm is looking to boost its output by using overseas operations, rather than invest in greater capacity at home.
The British company, owned by India's Tata Motors
Like much of the British car industry, JLR is also worried that Brexit could leave its car exports facing lengthy customs delays and tariffs of up to 10 percent, risking the viability of production in Britain.
Austrian contract carmaker Magna Steyr, a unit of Magna International
"With plans already in place to take Jaguar Land Rover's three vehicle manufacturing plants in the UK close to their operating capacity, the creation of overseas manufacturing facilities delivers additional volumes needed to support the company's future strategy," the firm said in a statement.
"It allows Jaguar Land Rover to offer its customers even more exciting new vehicles, to protect against currency fluctuations and to build a globally competitive business."
Magna will also produce the firm's previously announced first electric model, the I-PACE, from 2018, although JLR has said it wants to build low-emissions vehicles in Britain if certain conditions are met.
(Reporting by Costas Pitas; Editing by Greg Mahlich)