UP TO 1,000 jobs could be created in the city thanks to a multi-million pound investment deal between Coventry-based CAD CAM Automotive (CCA) and China Red Sun Group.
CCA and Red Sun will make an investment of £300 million pounds over the next five years, starting with an initial investment of £50 million on a new energy and new power complete vehicle research and development centre.
The deal follows Chinese President Xi Jinping’s successful visit to the UK and was officially announced after a visit to CCA’s Coventry facility by Ms Huang Lixin, member of the standing committee of Jiangsu Province and Party Secretary of Nanjing City.
Ms Huang is the leader of Jiangsu, a province which contains more than an eighth of China’s manufacturing industries, and the leader of Nanjing City, the capital city of Jiangsu Province.
She was accompanied by officials from all the important economic departments, as well as leaders of major listed companies from this area of China.
Among the business leaders in the delegation was Mr Yang Shou Hai, president of Red Sun Group, who officially announced the investment in CCA during the visit.
CCA is a high-technology, creative design, development and manufacturing company. It can trace its roots back more than 100 years, and has a solid reputation in the UK automotive industry.
The creativity and high-tech nature of the CCA was praised by Ms Huang during her visit to the firm’s 30,000 sq m facility on Holbrook Lane in Coventry.
Red Sun Group is established as one of China’s Top 100 companies through several criteria, including brand reputation and is one of China’s Top 500 companies both in the manufacturing industry and private sector.
The high-tech company employs over 7,000 people, has a turnover of more than £2 billion and contributes over £100 million in tax annually.
Red Sun’s products are exported to over 100 countries in the world and it has major co-operation with leading companies in many industries.
Martyn Wheeler, managing director of CCA, said the firm now has its sights set on moving to a new purpose-built facility following completion of the deal.
“We’re delighted to have agreed an investment deal which paves the way for an exciting growth programme at CAD CAM Automotive,” he said.
“CCA has been involved in the development of some of the world’s most iconic vehicles and Red Sun Group has recognised a great opportunity to be part of the exciting vision we have for the future of the company.
“The investment will enable us to move forward with our plans to build a new production facility which will create up to 1,000 new jobs.
“We’re in the process of identifying a development site, which we hope will be in the Coventry area and would continue the company’s long association with the city.”
Mr Yang Shou Hai, president of Red Sun Group, added: “Red Sun is on its way to becoming China and the world’s pioneer in new technology, independent innovation and industrial models, attracting global attention, and targeting entry into the global Top 500 companies by 2020.
“CCA will promote development with upstream and downstream companies, create up to 1,000 jobs, and look to develop the supplier base for additional support.”