Warner Bros says it will invest roughly 100 million pounds (USD 161 million) in a major expansion of the Leavesden Studios.
Chairman and chief executive Barry Meyer said today the investment will give Warner Bros a state-of-the-art, permanent UK film production base.
The enlargement program is set for completion in 2012.
The studio has been used for production of all the Harry Potter movies and other recent hits, including "The Dark Knight" and "Inception."
Leavesden Studios is in Watford, about 25 miles northwest of London.
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