After months of haggling, the DTI and BMW last night finally reached agreement on a new £400m plant to manufacture the new Rover engine. The 92,900 sq m (1m sq ft facility) will be built on a brownfield site at Hams Hall Distribution Park, near Birmingham.
Although it has long been known that BMW was considering the site, last month the negotiations seemed in danger of falling through with the investment possibly going to Austria instead. The DTI was saying it could not offer the £60m in grant aid BMW was looking for. A spokesperson for the department refused to confirm what agreement had been reached on the level of aid that will be provided.
English Partnerships bought the 85-acre site from PowerGen last April, with the intention of using it for a major inward investment. Design work on the factory and site preparation will start immediately.
EGi News 15/11/96
