Chinese car giant Changan has revealed it will invest up to £30m over the next five years in research work at its new Nottingham base.
The company officially opened its UK Research and Development operation at Nottingham Science Park yesterday in front of an international audience.
The company confirmed its plans to employ 200 people working on improving the efficiency of its current engines and gearboxes and helping develop new hybrid designs.
It has taken more than 2,000 sq ft of space in the eye-catching buildings at No 1 Nottingham Science Park for its initial presence, which is likely to commence operations this year.
It is likely to take more space as it expands staff numbers over the next five years – and may ultimately look at building its own base in the city.
The Nottingham operation will feed into a huge business which has major plans for growth.
Changan plans to increase vehicle production from two million to three million by 2012, with a target of 4.5 million vehicles by 2015 and six million by 2019.
Its plans reflect the vast scale of the Chinese car market – forecast to reach 30 million vehicles within a decade – and opportunities for growth in emerging economies.
Changan has no current plans to sell cars in Europe, but Mr Liu did not rule out European sales or production.
The company currently has annual revenues approaching £10 billion, and employs 2,700 R&D staff in China and overseas with a budget of more than £400 million.
Nottingham joins two other Changan R&D centres, with styling work carried out in Turin, Italy, and interior design work done at Yokohama in Japan.
Both locations are renowned centres of excellence for the global automotive industry, and Changan's choice of Nottingham for its powertrain work reflects the presence of significant engineering expertise across the East Midlands in the development of engines and gearboxes.
In particular, Changan already has a long-running relationship with Romax, the Nottingham Science Park company which developed a software programme car companies can use to develop powertrains virtually.
Speaking through an interpreter, Mr Liu said: "Changan selected Nottingham Science Park because there are a number of development and human resources where we can establish good relationships," he said.
"We already have co-operation with Romax, Mahle, Lotus and universities such as Loughborough and Nottingham.
"The second reason is that the East Midlands Development Agency played a very active role in the preparation and selection of the place for our R&D centre in the UK."
Changan deputy director Zhong Ling added: "We think this establishment by Changan will have benefits for Changan and also benefits for the UK and the UK government."
Emda's chairman, Dr Bryan Jackson, played a key role in securing the Changan investment.
For more information, visit: www.thisisbusiness-eastmidlands.com