HONDA'S decision to create 700 new jobs at its South Marston plant could be the start of a business boom in Swindon - that is the resounding message from town leaders today.

Bill Cotton, economic development director at Swindon Council, said that the knock-on benefits from such a major investment would be massive.

Although, he could not reveal further details, he said the council was already in talks with a number of big firms wanting to relocate here on the strength of Honda's move.

"I think it is fantastic for the town," he said.

"It shows that people in Japan and around the world have got confidence in Swindon and its people.

"Making such a massive investment shows Swindon can produce quality vehicles and a quality product."

He said the goal was to make Swindon the prime location for UK businesses.

"Our mission is to make Swindon the best business location and this goes to show that that is not a wild aspiration.

"It is backed up by commercial realism and businesses making that investment.

"It is important that businesses like Honda are investing because it is the massive spin-offs that come with this kind of big operation.

"We are talking to a number of big companies that want to relocate here on the strength of Honda's investment."

Leader of Swindon Council Roderick Bluh said the announcement was a big boost to the town's future.

"This is showing such a vote of confidence in the town," he said.

"We just think it is great for the way we are trying to develop Swindon as we move forward."

North Swindon MP Michael Wills was equally optimistic about what the move will mean for the town.

"This is really good news for everyone at Honda," he said.

"It is going to offer them great job security and it is great news for the entire town.

"Over the years we have seen Honda grow at a time when other car companies have really found it very difficult.

"It is a tribute to Honda, the engineering excellence of their cars and the sensitivity to what their customers want.

"It is fantastic news for Swindon."

Honda said that the quality of its Swindon work force was fundamental to its decision to expand.

The success of the Civic car had also persuaded managers that it was the right way to go.

The workforce will now rise to 4,900, from 4,200, and production of vehicles will be increased from 190,000 to 250,000 a year.

This was announced at the Paris Motor Show by Takeo Fukui, the president and chief executive of Honda, who flew in especially from Japan.

Production of the new Honda Civic started a year ago, and Mike Godfrey, chief engineer at Swindon, said the company had already sold as many Civics in the first eight months of this year as it did in the whole of last year.

Increased demand of the Civic, coupled with next month's start of full-time production of the new CR-V 4x4, created the need to grow.

Increasing the rate of production from 190,000 a year to 250,000 a year will be met by the end of next year - which is a daily rate of 1,165 vehicles a day.

Dave Hodgetts, director for planning and business administration at Honda in Swindon, said he regarded the new jobs as a firm commitment to both the town and the UK.

"This is a massive show of confidence in our associates working at the Swindon plant and clearly demonstrates Honda's long-term commitment to the area and to British manufacturing," he said.

"Now that we have been given the go-ahead to increase the workforce we are starting recruitment straight away.

"As well as people to work on the production line we will also be recruiting in other fields."

Honda is forging ahead at a time when other motor companies around the world are struggling.

Ford is shedding tens of thousands over the next few years in America and only this week the French car maker Peugeot said that it would axe 10,000 jobs over the next year.

Honda said that it would not be putting up any new buildings for the extra work force.

A second shift of 700 people will be created and the company wants this up and running by February.

The production line ground to a halt for a few minutes yesterday so that staff could be told the news first.

Paul Briggs, the chief executive of the Thames Valley Chamber of Commerce, which incorporates Swindon, said: "When I was over at Honda recently I was impressed with the positive attitude which exudes from the place.

"With BMW doing well in Oxford and Swindon it just shows what we can do here."

Cars from factory go around world

Before yesterday's announcement Honda employed 4,200 at South Marston and they were by far the largest employer in the region.

Employees are known as associates regardless of rank and status and everyone wears identical white boiler suits.

The area of the plant is 370 acres and it is in the same place which was used to build the Spitfire aeroplane in the Second World War.

Honda is proud of the fact that it took not a penny in grants from the Government and has invested of £1.33bn of their own money to date.

The models which are currently in production are the three and five door Civics and the new CR-V goes into full production in October.

The engines in production are the 2.2 iCTD-i (diesel), the 2.0 i-VTEC (petrol),the 1.8 i-VTEC (petrol) and the 2.4 i-VTEC (petrol).

Honda started life in Swindon when it was incorporated in 1985 and the factory was open for business in 1986 for pre-delivery inspections.

The engine plant was opened in 1989; car plant 1 in 1992 and car plant 2 in 2001.

The annual production capacity is 250,000 and this will be reached with the influx of the extra work force.

At the moment 190,000 units are made at South Marston.

Cars built in Swindon go around the world with markets in North America, South Africa, the Middle East and all of Europe including Russia.

The 100,000 mark was topped in 1996 and 190,000 will be reached this year.

Swindon Honda cars have won a host of awards over the years.

They include: 2006 Off Road / SUV Green Car of the Year, Environmental Transport Association (CR-V); Best Compact SUV, Fleet News Awards (CR-V); 2005 Best SUV / MPV, Diesel Car of the Year Awards 2005 (CR-V); Soft Road Winner, 4x4 Magazine (CR-V); Auto Car of the Year, Auto Express (Civic); Best Hatchback, Top Gear Awards (Civic Type -R); 2004 Best Hot Hatch, What Car? Car of the Year 2004 (Civic Type -R); 2003 Best Hot Hatch, What Car? Car of the Year 2003 (Civic Type -R).

Finding the workers in weeks is key task

Hiring 700 people in a matter of a few weeks will not be a difficult task for Honda, who are regarded as one of the best employers in the UK.

At the moment 80 per cent of their 4,200 employees live within 30 miles of the plant and it's unlikely that this will change.

As well as employees for the production line, Honda will be filling vacancies for technical, purchasing, maintenance and other staff.

The average pay packet is about £20,000 a year and only a few associates will be earning less than that.

When someone joins Honda they first work on a temporary contract which becomes permanent after six satisfactory months.

As well as a good wage packet Honda employees receive good benefits.

These include health insurance, pension, a subsidised canteen and, best of all, a Honda vehicle on a generous lease deal.

To qualify for the last benefit the staff member has to work for the company for three years.

The staff agency which is used by Honda is the Best Connection Group of Commercial Road, Swindon and they have worked hand in hand with the company for some years.

But they declined to comment on the matter.

However, potential employees will also be using the website hondamanufacturing.co.uk which directs them to the vacancies.