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Chinese car-maker Changan Automobile is considering setting up a new base in Coventry – creating more than 100 skilled jobs.
The automotive giant, one of the largest car-makers in the Far East, has announced it is looking to set up a research and development operation in the West Midlands.
Coventry has been earmarked as a potential location for the impressive facilities, as well as other sites in Birmingham and Solihull.
It is believed Changan chose the region because it wants to be closer to other local automotive firms.
The news has been welcomed by business leaders, who say it highlights the city’s appeal to international firms.
Louise Bennett, chief executive of the Coventry and Warwickshire Chamber of Commerce, said: “The manufacturing and engineering sector is vital to the past, present and future of Coventry and Warwickshire’s economy.
“The automotive sector is very much part of that and this region remains a hotbed of activity.
“Of course, the fact that Coventry is being considered for this site is promising and, again, highlights how attractive it is for international companies in this field.”
Changan UK set up its research and development centre, CAUK, in Nottingham Science Park in 2010, where it carries out powertrain design and development for Changan’s next generation vehicles.
It is not known whether this facility will close with staff relocated to the new West Midlands base.
The company – which is one of the top 15 vehicle manufacturers in the world – currently produces two million vehicles each year under its own brand, with a sales income of more than £10billion. Changan also has joint ventures with Ford, Mazda, Suzuki and PSA.
Other sites being explored by the manufacturer for its new research and development facilities include the Advanced Manufacturing Hub at Aston.
But a decision on the location is not expected to be made until later this year.
The news comes as Jaguar Land Rover – which has its global headquarters in Coventry – revealed its new manufacturing operation in China will begin production before the end of the year.
The plant will have an initial annual production capacity of 130,000 vehicles – more than double the number it sells in the UK, according to JLR’s China president Bob Grace.