The German sports car maker Porsche is abandoning plans to expand its test track in southern Italy following environmental protests.

The company announced on Thursday that it had decided not to pursue the development plan. However, the centre will remain an important part of Porsche’s development plans and the Volkswagen subsidiary will continue to test vehicles there in the future.

The company said the decision is the result of intensive discussions in recent months which included looking at the project from different social, environmental and economic perspectives.

“The changing conditions for the global automotive industry played a significant role in this decision,” it said. The Stuttgart-based company reported a slump in profits in mid-March and announced cost-cutting measures.

Porsche has been operating one of the most modern test tracks in the world since 2012, near the municipality of Nardò in Puglia, just a few kilometres from the Mediterranean Sea.

It includes a circuit of more than 12 kilometres with a diameter of four kilometres. Porsche tests new vehicles on the site, which covers more than 700 hectares. Other carmakers also use the location.

The expansion plans caused concern amongst environmentalists and residents. The carmaker had wanted to invest around €450 million ($485 million) in the project.

Existing tracks were to be redeveloped and new ones built. Environmentalists had warned that huge areas of landscape including woodland would have to be sacrificed.

The regional government ordered a temporary halt to the expansion plans last year.