The build would cost £35m ($56m) and the
company has also applied for £4-5m of government funding on the basis that the
new building would create 1,000 permanent jobs in the area.

If funding is secured, Princess Yachts
said it could be ready to open before the end of 2012.

Managing director of the company, Chris
Gates, said: “It’s going to be a tough year.

“We’ve had moderate growth in a difficult
market but securing a new production facility to meet growing demand is
extremely important.”

The plans were approved by Plymouth City
Council last year.