Engineering group TWR, based at Leafield, near Witney, has taken over the UK technical centre of Korean car giant Daewoo for an undisclosed sum.

All staff at the site in Worthing, West Sussex will transfer to the new owners.

The workforce was cut back from 750 a year ago to around 160 because of restructuring of the bankrupt car firm.

Daewoo said it would consolidate its research and development operations in South Korea in line with measures approved by the Korean courts.

The Worthing centre was opened in 1994 and has helped design a number of Daewoo cars.

TWR Group, set up in 1975, is best known for its Formula One motorsport activity with the Orange Arrows team. Though it is known for designing racing cars, 85 per cent of its business is road-car engineering.

The company works globally with leading automotive manufacturers to provide a full range of engineering services, from styling and design to full-scale engineering and manufacturing.

Founder Mr Tom Walkinshaw said: "This is a major acquisition supporting our development in business.

"I am impressed with the skills and achievements of the staff at Worthing."

The firm operates a £2.3m virtual reality design studio at its Oxfordshire base and is one of the UK's top five users of computer aided design.

Continued expansion, with manufacturing operations in Australia and Sweden, has increased pressure to integrate its own operations and strengthen supply chain links with external partners.

Executives from TWR have been negotiating closely with Daewoo for several months.

Managing director Mr Craig Wilson said: "We have acquired a high-technology centre and secured employment for a significant number of professional engineers.

"The projects, facilities and resources at Worthing are complementary to TWR and support our plans for a greater international profile."

The Renault Sport Clio V6, Holden HSV cars and the OmniNova range of buses and taxis are among the high-profile niche vehicles manufactured by TWR.