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London, England - Chinese automaker Nanjing said on Tuesday (September 27) it planned to revive production at the former MG Rover assembly plant in central England by 2007 and create 1200 jobs at the site.

Nanjing bought the assets of the British carmaker after its collapse in April; it said said it hoped to produce 100 000 cars a year within five years at MG Rover's Longbridge plant.

Nanjing vice-president Wang Qiu Jing said: "At the moment we believe we can create up to 1200 jobs at Longbridge but this figure could be higher, subject to more detailed planning."

MG Rover collapsed under debts of £1.4-billion (about R16-billion) in April 2005, resulting in 5000 job losses when its production plant closed.

Nanjing said it planned to keep two of the three final assembly lines at Longbridge, including a paintshop. Production would restart in 2007, though work on two models could start earlier.

It was Nanjing's first statement on its plans for the MG Rover assets since it won the right to buy the assets in July. It also said it was considering four or five new models, but they depended on market conditions and the final business plan for Longbridge.

Administrators PricewaterhouseCoopers chose Nanjing over a bid from rival Chinese carmaker Shanghai Automotive (SAIC) to buy the MG Rover assets in July.

SAIC denied media reports last week it had agreed on a deal with Nanjing over production of some Rover models. SAIC previously bought the rights to build the Rover 25 hatchback and Rover 75 sedan. - Reuters

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