Chinese taximaker boosts LTI
Coventry-based taxi manufacuturer LTI is set for a boost after news that its Chinese partner is gearing up for a major expansion.
Geeley Automotive, which manufactures the iconic vehicle in China, is reportedly planning to invest around £184m over the next three years to boost production capacity at its Lanzhou plant in Gansu Province.
The enlarged factory, which is scheduled for completion in 2012, will be capable of yielding an estimated £900m according to officials quoted in the China Daily newspaper.
The news will also provide a welcome boost to LTI’s parent company Manganese Bronze, which has heavily promoted the Chinese joint venture as a major growth stimulant.
According to the newspaper, the Lanzhou plant’s capacity will increase to 120,000 vehicles units compared with its current output of 50,00 units.
“We are looking to being the leader in the northwestern markets and are significantly enhancing our production lines, sales, technologies and services,” Li Shufu, chairman of Geely, was quoted as saying.
The strategy is thought to be in the best long term interests of the company as it will help to reduce costs and increase its market share in the vital Far East region.
Li Shufu underlined the firm’s ambitions by saying it planned to manufacture – and sell – two million vehicles over the next five years, with half being sold in China and half abroad.
It is looking to support this by establishing 15 overseas production facilities by 2015. It has already set up plants in Russia, Ukraine and Indonesia, with a Malaysian plant set to come on line shortly.
The taxis gained a worldwide profile when they were used on the streets of Beijing during the 2008 Olympic Games, while then Trade Minister Lord Jones of Birmingham used one of them to ferry him around the city during an official visit to the capital.
