Car maker Toyota has announced an £88m investment at its Flintshire plant, where its new NR engine will be built alongside its ZR engine.
The investment will safeguard existing jobs, but will not create any
Staff at the plant on the Deeside Industrial Estate will begin producing the 1.3 litre petrol engine in 2009.
Toyota Motor Corporation's executive vice-president Tokuichi Uranishi said the plan would contribute to long-term employment in the region.
Visiting First Minister Rhodri Morgan said: "It's a wonderful day for Wales."
Mr Morgan was at the factory for the announcement with his deputy, Ieuan Wyn Jones, where they were told the extra investment would not create any new jobs initially.
The firm invested what was thought to be £100m at the plant last year.
That went towards building a petrol engine for its new Auris model and was credited with safeguarding nearly 200 jobs at the plant.
Mr Uranishi said the new money represented a continuation of investment and development to meet CO2 reduction requirements.
He added: "This announcement recognises the quality of the UK workforce and demonstrates Toyota's confidence in our UK investment and continued efforts towards local production.
"This new engine, along with the recent investment here at Deeside, means this plant will have two of the most advanced engine manufacturing lines in the world.
"In making this announcement today, I would like to recognise the partnership we have with the Welsh Assembly Government, suppliers and the local community."
Mr Morgan said: "The fact that Toyota has chosen to develop these new engines in north Wales is testament to the skills of the local workforce and the assistance given to the company by the assembly government for the development of new engine technology."
Toyota said it had already invested £700m in the Deeside operation, and was committed to long-term stable employment.
The Deeside factory produces fully-assembled petrol engines for Toyota's vehicle manufacturing plant at Burnaston, Derbyshire where the Auris and Avensis models are produced.
Production began in September 1992, and in February 2007 the plant celebrated the production of 3m engines.