A £90 million mission to lift skill levels to compete with China and India will include a £14 million manufacturing academy.

It will be one of a series set up by the government across sectors of industry to challenge the growing Asian economic powerhouses. Courses will be designed by the industry, for the industry and aim to train 40,000 students a year by 2012.

Milkround employers such as Rolls Royce, BAE Systems and Corus are backing the project, along with Caterpillar, Ford and Nissan. The national centre in Birmingham will join up with lead colleges in each region of England delivering courses under the National Skills Academy brand.

Trade and industry secretary Alistair Darling said: "Raising skills has to be a national mission. That is why some of the best-known manufacturers in the country are on board.

"The new skills academy for manufacturing can be the production line for the next generation of highly trained, highly motivated manufacturing workers. The country needs them."

The government aims to have up to 12 academies for different industries operational by 2008. It is investing £90m in the programme, which will be delivered through the Learning and Skills Council working with employers and their Sector Skills Councils.

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