Geely to invest $372m on new London Taxi facility

British Prime Minister David Cameron and The Mayor of London Boris Johnson visit the London Taxi Company in Coventry, United Kingdom on Mar 26.[Provided to China Daily]

Zhejiang Geely Holding Group Co Ltd will invest 250 million pounds ($372 million) to build a new facility for the London Taxi Company in Coventry, United Kingdom, the Chinese company said on Thursday.

The 85,000-square-meter site, which is close to the company's existing factory, will house all of the company's research, development and assembly operations.

Up to 1,000 new jobs will be created through the investment in the site, which will eventually have the capacity to assemble up to 36,000 vehicles a year.

"This investment will secure the future of London Taxi Co. Today's announcement symbolizes the close business links between China and the UK, which is an attractive market for Chinese investment," said Li Shufu, founder and chairman of Geely.

"The London Taxi expansion will show how we can harness our resources, industrial knowhow and technology to produce an environmentally friendly next-generation London Black Cab," Li said.

This is a ten-fold increase on capacity at the company's existing site, which has been home to the London Taxi Company for almost 70 years.

"Geely's 250 million pounds investment and the creation of up to 1,000 jobs is great news for Coventry and a vote of confidence in our long-term economic plan to back business, create jobs and secure the recovery," British Prime Minister David Cameron said.

"The London Black Cab is iconic around the world and I am pleased that the next generation will have a state-of-the-art production facility in the UK," Cameron said.

"Britain is one of the most open and attractive economies. Chinese investment is welcomed and it is good for China and for Britain interms of creating jobs and livelihoods. Over the time these taxis will be seen being exported all over the world," Cameron added.

Geely's commitment to the London Taxi Company marks the largest ever greenfield investment in the UK by a Chinese company and is being backed with funding from the UK government's regional growth fund and other UK and local government support.