Chinese car manufacturer Changan has confirmed it is searching for a new site for its UK research and development operation. In 2010 Changan established a base in Nottingham Science Park but now wants to move closer to the West Midland’s cluster of automotive firms.
Changan Automobile — which is among the top 15 of vehicle manufactures in the world and number four in China — produces two million vehicles a year, mainly no-frills passenger cars and micro-vans, small trucks and commercial vans. It also has ongoing joint ventures with Ford, Mazda, Suzuki and PSA Peugeot Citroën.
Decorum Estates, the Nottingham-based property company is thought to be assisting the car maker with its search for a mixed office and warehouse development between 50,000 and 100,000sq ft. Some sources are claiming to requirement also includes space for a showroom and distribution facility.
On its website the vehicle maker says rather ungrammatically: “CAUK is currently based in Nottingham and, have an ambitious expansion plan of having other sites in the UK”. It does not say whether a move to a new West Midland’s base would mean the closure of its Nottingham operation.
Changan, which generates £10bn a year in sales, also wants to upgrade its UK research and development base to push ahead with its electric car projects. It launched its first hybrid car in 2007 and is known to be devoting billions of pounds to the power train of its next generation of “clean” vehicles.
When it moved into its existing premises, the company’s UK general manager announced: “Part of the reason we came to Nottingham Science Park was because the building has this green and environment friendly idea behind it, and that fits well with Changan’s view of our future development direction and automotive industry trend.”
Not surprisingly, Birmingham is the front runner for the new Changan base. Talks between city officials and the company’s board have been taking place for about 18 months during which time council leader, Sir Albert Bore, led a delegation to visit the company in China. Another clincher could be Birmingham Airport’s expected announcement that it will be offering direct flights to China starting later this year.
One unnamed source told the Birmingham Post: “Changan wants this to be a prestige development. This is not just going to be a shed, it is going to showcase the company’s aspirations … They have big plans for the UK market and they want a visible location.”
The West Midland’s is increasingly attracting interest from both Far Eastern businesses and property investors while boasting a £1.7bn export surplus with China. Jaguar Land Rover’s soaring Asian sales are a major investment draw. So, too, is the return of the MG sports car marque to Birmingham under Far Eastern ownership.
No decision by Changan is expected before the autumn with the construction of its new base taking at least another 12 months.
