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Nanjing Auto in talks to restart MG Rover plant
(Shenzhen Daily/Agencies)
Updated: 2005-10-31 09:25

Domestic automaker Nanjing Automobile is in talks with partners about restarting production at Britain's mothballed MG Rover car plant, a senior executive was quoted as saying in Friday's Financial Times newspaper.

Wang Qiujing, vice president of Nanjing and head of its British operations, told the British business daily that he hoped to tie up a deal "as soon as possible".

Nanjing Automobile is talking to at least three partners and is open to further approaches, Wang said.

He said he wanted a British manufacturing joint venture and was speeding up talks by laying out the automaker's requirements to potential partners.

"We lack international experience," Wang told the newspaper at the mothballed Longbridge factory in Birmingham, Britain's second city and traditional manufacturing heartland.

"We are the newcomers in the global market and to guarantee this project will be successful, we really need a partner."

Wang spelt out three conditions for a deal: China would provide low-cost manufacturing of components for assembly in Britain, full use would be made of both countries' markets and product development costs would be split between the two.

He said the size of Nanjing Automobile's stake in any partnership was up for negotiation and it would not insist on a majority holding. However, it was not willing to sell the business.

Nanjing Automobile agreed in July to pay more than 50 million pounds (US$87 million) for the assets of MG Rover and its engine division Powertrain, seeing off competition from mainland rival Shanghai Automotive Industry Corporation (SAIC).

Century-old MG Rover, which produced the Mini and Jaguar, was forced to sack 6,000 workers in April after a failed tie-up with SAIC helped push it into bankruptcy.



 
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