East Midlands Development Agency (emda) has announced that Changan Automobile Co Limited, one of China’s leading car manufacturers, is establishing Changan UK Research and Development Centre in Nottingham, creating up to 200 new jobs over the next three years.

Changan Automobile Co is one of China’s largest car makers, and the new centre, which will be based at No. 1 Nottingham Science Park. Changan’s sales have been increasing by around 30% annually, and its production and sales between January and April in 2010 ranked second in China.  The company’s production capacity is 2.5 million units per year, and the establishment of the facility in Nottingham will enable Changan to collaborate with UK automotive R&D companies and will also help UK companies win business with Changan.

emda, together with its East Midlands China Business Bureau, has been working intensively with Changan since March 2009, to look at the national and regional strengths in automotive R&D, particularly in powertrain, transmissions, chassis and new energy technologies. emda successfully demonstrated the benefits of Changan establishing a R&D facility in the region, due to the availability of skills and expertise within businesses and regional universities.

Changan Automobile owns 9 production bases and 21 whole vehicle factories in China, with its turnover in 2009 being approximately £6 billion. The business has ambitions to break into the global top ten motor manufacturers, and the establishment of the R&D centre in Nottingham is a vital part of this plan. Mr XU Liuping, Chairman of the Board for Changan Automobile, said: “Setting up our own R&D centres overseas, including in the UK, is a vital stepping stone for Changan Automobile to utilise global resources and to enter the league of the world-leading car makers.”

The investment in the East Midlands came about as a result of a visit by emda’s Chairman, Bryan Jackson, to Chongqing Municipality in China, in November 2007.

While in China, a Memorandum of Understanding (MoU) was signed to develop collaborative international partnerships between Chongqing Municipality and the East Midlands. The aim of the MoU was to identify leading automotive companies in Chongqing to establish Research and Development centres in the East Midlands and to identify suitable business and research partners in the region.

In July 2009, Chongqing Automotive Industry Office led a delegation of Chongqing automotive companies interested in developing business collaborations to the East Midlands, a visit which was hosted by emda and the China Business Bureau. Chongqing Changan New Energy Automotive was a major and active participant of the visit.

Once Changan announced its interest in establishing a UK R&D base, emda and the East Midlands China Business Bureau worked together with UK Trade and Investment, to ensure that the investment came into the region.

Speaking about the investment, Bryan Jackson, Chairman of emda, said: “This announcement is fantastic news for the East Midlands. Changan Automobile has chosen to locate here because of the research expertise of our universities, the reputation of the world class automotive engineering firms based in the region and the high quality workforce.
 
“Changan will be creating over 200 research jobs and opportunities for UK automotive companies to do business with Changan, further establishing the region’s reputation as a location for innovative, high technology companies. We are looking forward to working with them to ensure that they build a successful and prosperous business here in the East Midlands.”

The centre in Nottingham, which will be open before the end of the year, will focus on powetrain and transmission technologies as well as investigation into “new energy” electric and hybrid vehicles.
They plan to establish a facility that initially employs 25-30 employees and within three years they plan to expand up to 200 employees by the end of 2013. Nottingham based Transmission technology business, Romax, is already working with Changan and will play a key role in helping to establish the new centre.

Nick Whittingham, British Consul General Chongqing, said: “I am delighted that Changan has opted to set up their business in the UK. Chinese companies such as Changan offer a vast range of opportunities and benefits to the UK. The Changan project will not only bring investment and jobs to the UK but will also set an example to the growing number of high quality and high value Chinese companies to bring their businesses and investment to the UK."

Dr YU Chenglong, the Project Leader of Changan UK R&D Centre, said “After thorough research and consideration, we feel UK's advantages in automotive R&D, the range of its industrial capabilities which fit well into Changan's strategy and UK's openness to work with Changan strongly position UK to host Changan's R&D Centre. The East Midlands, in particular, with its central location, availability of strong automotive R&D companies and research institutions within and around this region, and its long-established links with Chongqing, makes it the ideal choice for Changan.
 
“In the last few months, emda and its dedicated China Business Bureau have been highly professional, efficient and flexible in working with Changan providing excellent service and support. Changan plans to break into the global top ten motor manufacturers in the coming years. Changan UK will be working closely with UK automotive companies to, emda and its dedicated China Business Bureau to achieve this ambition.”

Changan has already set up R&D engineering centres in Beijing, Harbin, Jiangxi, Shanghai and Chongqing as well as two design centres, one in Turin, Italy, which was opened in 2005 and another in Yokohama, Japan, in 2008. Changan invests heavily in R&D, which accounts for over 4.5% of annual sales for almost a decade. It plans to invest over RMB10 billion (approx. £1 billion) in R&D over the next 3 to 5 years.

No.1 Nottingham Science Park, where Changan will be based, is an award winning, low energy technology and research facility owned and operated by specialist developer, Blueprint, and already home to a number of hi-tech occupiers in the low-carbon and ICT sectors.  The site will provide space for immediate occupation, with expansion capability for the future.

For more details about the support that is available to businesses interested in investing in the East Midlands, visit England’s East Midlands on www.englandseastmidlands.com/support, or telephone 0115 988 8400.

For more information, visit: www.emda.org.uk