Jaguar Land Rover has announced a manufacturing partnership with Magna Steyr to build some of its future models in Graz, Austria.

As JLR’s three vehicle manufacturing plants in the UK are close to their maximum operating capacity, the agreement with Magna Steyr will allow the UK-based automaker to “create additional volumes needed to support the company’s plans to achieve further growth.”

While Jaguar Land Rover didn’t say which models will be built in Austria, a report from Auto Express says a future SUV smaller than the F-Pace will be made there. While the mid-sized F-Pace SUV (pictured) is expected to debut at the Frankfurt Motor Show in September, a smaller B-segment crossover may be built in Graz from 2020. The report also says Jaguar could launch more SUVs and coupe SUVs later on.

“The partnership with Jaguar Land Rover brings a new customer to our Graz plant. As always, we will work with our fullest commitment and dedication to ensure that we meet our customer’s high expectations,” said Günther Apfalter, President Magna Steyr and Magna International Europe.

This doesn’t mean Jaguar Land Rover will put less emphasis on its UK operations. “The UK remains at the center of our design, engineering and manufacturing capabilities. Partnerships such as this will complement our UK operations and engineering,” said JLR CEO, Dr. Ralf Speth.

Jaguar Land Rover currently has three vehicle assembly plants and a new Engine Manufacturing Centre in the UK: Castle Bromwich (builds Jaguar XF, Jaguar XJ and Jaguar F-Type), Halewood (Range Rover Evoque and Land Rover Discovery Sport) and Solihull (Range Rover, Range Rover Sport, Land Rover Discovery, Land Rover Defender and Jaguar XE).

There are also two overseas manufacturing facilities: one in China which builds the Range Rover Evoque and one in Brazil, which will become operational in 2016. In addition, Jaguar Land Rover has had a local assembly presence in India since 2011, where it currently assembles the Range Rover Evoque, Jaguar XF and XJ.

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