The new owners of the UK's last aluminium smelter plan to create a major automotive manufacturing plant as part of a major expansion which could create up to 2000 jobs.

Liberty House bought the Lochaber Smelter from mining firm Rio Tinto in a £330m deal last year.

The move, which also included the purchase of the hydro power plants at Fort William and Kinlochleven, saved 170 jobs.

The firm's plans for the site are set to take a key step forward on Friday as bosses give more details of a further £120m investment.

Bosses intend to expand metal manufacturing and downstream engineering at the site in major works which could create up to 2000 jobs.

The GFG Alliance - incorporating Liberty and its sister company SIMEC - intends to "revitalise" the smelter and nearby hydro schemes.

The £120m sum will also go towards "state-of-the-art facilities" to manufacture automotive products.

On Friday, rural economy minister Fergus Ewing will chair the inaugural meeting of the new Lochaber Delivery Group, which aims to provide housing, training, infrastructure and local services for workers.

He will then switch on the newly installed bio-fuel generating units located within SIMEC's hydro-power station adjacent to the smelter.

The new owners say the new units will make the Fort William plant the "greenest metal producing facility in the UK" as it provides two different sources of renewable energy.

"Lochaber now has an enormous once in a lifetime economic opportunity," Mr Ewing said.

"This investment is great news for the whole local community. The deal has already safeguarded 170 direct jobs and the GFG estimates their plans to build new production facilities on-site will contribute towards eventually creating up to 1,000 direct and 1,000 indirect posts, contributing as much as £1bn to the local economy, and sparking an economic revival in these Highland communities."

Margaret Davidson, leader of Highland Council, said: "The proposals being brought forward represent the largest inward investment project which The Highland Council has dealt with in Lochaber and one of the largest ever in the Highlands.

"It shows that the area is very much open for business. The Lochaber Delivery Group is an excellent innovation and the council is pleased to be part of taking this transformational project forward".

GFG Alliance (Liberty/SIMEC) executive chairman Sanjeev Gupta said: "One of the key reasons we invested in the Highlands was because people welcomed us here.

"That's been reinforced by the positive response of the many agencies in the new Lochaber Delivery Group who are eager to play their part in delivering the goal of a clean, competitive and sustainable manufacturing sector in the Highlands."