The factory will be used to create the firm's Blade Compressor design and complement the business's research and development technology centre at Napton.
The first part of the facility will open later this year. Once finished in 2020, the company's workforce will be more than doubled with 75 new jobs being created.
The project has been backed by Shield Group Engineering, one of the largest manufacturers in the UK, which has contracts to supply Caterpillar, Cummins, Aston Martin, Jaguar Land Rover and JCB.
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A total of £65m will be invested by 2021; £15m in development of this project and £50m in a further site, with funding currently being sought for the second phase of expansion.
Steve Lindsey, Chief Executive and Founder of Lontra, said: "This is a vote of confidence in Britain's ability to manufacture at volume and high specification at globally competitive prices.
"We've long led the world in innovative ideas. The spread of technology across prototyping and manufacturing means that Britain is perfectly placed to lead the fourth industrial revolution.
"This is a new chapter for our business and we are delighted to be spearheading a new wave of precision manufacturing in the UK, and are committed to the Midlands where we believe that some of the world's very best engineering minds can be found."
(LM)
