Chinese firms keep UK auto industry ticking

TX4 black cab is being assembled at the London Taxi Company in Coventry in late July. [Wang Mingjie/China Daily]

Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said that "the manufacturing and engineering sector is vital for the past, present and future of Coventry and Warwickshire's economy".

"The automotive sector is very much part of that, and this region remains a hotbed of activity," he said.

Coventry is often called the home of the British auto industry and has spawned several big brands like Jaguar, Rover, Triumph, Healey and Riley. While the area is still at the heart of the UK's motor industry, government officials and business leaders are keen to ensure that the region retains the skills it needs to secure a bright future.

And that is precisely what Geely and other Chinese companies are helping do in Coventry.

"A year ago, when I visited London Taxi Co, it was rather quiet. But this time when I came to the factory, it was bustling with activity," said Zhou Xiaoming, minister counselor for economic and commercial affairs at the Chinese embassy in the UK.

Zhou said the auto industry has become "a hot spot of Chinese investment in the UK, especially in Coventry", adding that Chinese private firms are also playing an important role.

Shandong Yongtai Chemical Group Co, a privately owned manufacturer from Shandong province, took majority ownership of Covpress, a UK-based car parts maker, in a deal worth 30 million pounds in July 2013.

Covpress has seen remarkable growth since then. As a direct result of a 10 million-pound infusion into the industrial unit and 2.6 million pounds for machinery purchase, 75 new jobs have been created at the Canley-based business unit, with turnover up 22 percent in the last 12 months. New orders are also mounting, with the longest contract extending to 13 years.

You Xiaoming, CEO of Shandong Yongtai, said: "We have signed a five-year contract with a luxury sedan manufacturer worth 230 million pounds, and a 13-year one with MPV (multi-purpose vehicles) carmakers valued at 384 million pounds."

Veneer Manufacturing Centre of Jaguar Land Rover was acquired by Lawrence Automotive Holdings Ltd from Zhejiang province in November 2010.The value of the deal was confidential.

The company has seen significant growth since the acquisition due to the launch of the new Range Rover from Coventry. Lawrence worked with JLR to transfer their staff back to the other JLR sites during a training program to employ more than 600 new people on-site.

Mark Beecroft, vice-president of Lawrence, said: "The acquisition has demonstrated China's commitment to overseas growth and expansion."