Aberystwyth's historic Vale of Rheidol Railway has secured a £300,000 cash injection from the Welsh Assembly Government, which will help to fund a wider £1.1m investment programme.

Plans for the attraction include a new 1,800sq m (19,375sq ft) workshop for the restoration of its collection of steam locomotives and to provide a focus for training and skills development. The investment is designed to secure eight jobs and will create a further four engineering positions and four other roles on the railway as part of the ten-year programme.

Welsh Assembly Government funding will allow the attraction to access £600,000 from the Phyllis Rampton Narrow Gauge Railway Trust, with the remaining money coming from the railway itself. Lesley Griffiths, Welsh deputy minister for science, innovation and skills, said: "The focus on training and skills, particularly the plans to introduce apprenticeships, is very welcome and will open up a range of new career opportunities for young people in the area."

The Vale of Rheidol Railway dates back to 1902 and was one of the last steam railways in the UK to be owned by British Rail until privatisation in 1989.