St Modwen has said it is looking forward to a “long and fruitful” relationship with Chinese firm Nanjing after signing a 33-year lease for the Longbridge site in the West Midlands.
The “landmark” deal opens the way for car production at the site of the collapsed Rover car business.
The agreement, signed today in a ceremony at the Longbridge plant in Birmingham, is for Nanjing to take the 33-year lease at a rent of around £1.8m a year on 105 acres of the 469-acre site.
The deal covers the South Works of the former MG Rover plant, incorporating two car assembly plants, the paint shop and administrative offices.
The terms of the lease incorporate a six-month break clause in case Nanjing is unable to confirm a viable long-term future for the site.
Wang Hongbiao, chairman of Nanjing, said: “I am delighted that we have reached an arrangement with St Modwen Properties.
“This means that we can move forward with our business plan to build cars at Longbridge.
“The MG brand is famous and we are proud to project it into an exciting future.
“We are grateful for the help and support Birmingham City Council has given us throughout this process and look forward to working with them in the future.”
Nanjing bought MG Rover for £50m last summer.
Bill Oliver, chief executive of St Modwen Properties, described the agreement as opening a new chapter in the long history of car production in Birmingham:
He said: “We always said that if there was a viable plan for a long-term automotive use at Longbridge, we would do our best to facilitate it.
“This agreement is the outcome of that commitment, and we are now looking forward to a long and fruitful relationship with Nanjing.
“We are hoping that with this agreement established, the other regeneration proposals proceed speedily through the planning process, to bring forward the creation of further jobs and provide major improvements to the Longbridge area.”
References: EGi News 22/02/06
