Geely Signs Agreement with Britain's Manganese Bronze to Produce Luxurious Brand-Named Taxis
HANGZHOU, Zhejiang, China, Oct. 27, 2006 -- Geely Automobile Holdings Group Co., Ltd. (Hong Kong: 0175HK) announced today that their Company Chairman, Li Shufu, has formally signed an agreement to jointly invest in the production of brand-named taxis with British-based Manganese Bronze Holdings (MBH) and Shanghai Maple, a subsidiary of Geely Auto, on October 24, at London's Royal Garden Hotel.
On the invitation of the British government, National Political Consultative Conference President Jia Qinglin, on an official goodwill visit to England, and Privy Council Dean Baroness Amos attended the signing ceremony and were witness to this Sino-British business cooperation.
The agreement stipulates that Manganese Bronze Holdings and Geely Automobile Holdings will form a new joint venture company. TX4 London Taxi's have enjoyed a long and successful reputation, and will now be produced in Shanghai, China. Meanwhile, MBH will directly purchase 30% of new common shares in Geely Automobile at a price of GBP2.5 per share in exchange for 48% rights and interests of the new joint venture. After the transaction, Geely Automobile will occupy 23% of MBH expansion capital stock, becoming the largest shareholder.
According to the agreement, in this joint venture, Geely will hold 51% of the shares; Shanghai Maple Automobile will hold 1%, while Manganese Bronze Holdings will hold 48%, making Geely will the largest shareholders of the joint venture.
Industry specialists believe that this corporation between Geely and MBH will bring benefits to the both sides in the near future.
The project is warmly supported by ELI international Holding Enterprises in England. It has taken almost five months of careful negotiation to finalize the agreement. As per agreement, the cars manufactured by the joint venture will go mainly on sale in England and other foreign markets, while introducing the cars into the China market.
This cooperation between China and England has pleased many international investors. Due to speculations surrounding the company, the stock price of Manganese Bronze Holdings Group rose from GBP2 to GBP5.7 over the last two months.
About Manganese Bronze Holdings Plc
Manganese Bronze Holdings Plc is a speciality automotive products and services group.
The group is comprised of the following businesses: -- London Taxis International (LTI): manufactures the renowned black taxi; and -- Mann & Overton: provides high quality support, repairs and servicing for taxis. About Geely
Geely Holdings Group is a large business group mainly engaged in the production and sales of automobile and its components.
Founded on November 6th, 1986 and after 18 years of construction and development, the Group has made outstanding achievement in the aspects of automobile, motorcycle, automobile engine, gear box, components, higher education, manufacturing of decoration materials, tourism and real estate, with total assets over RMB5 billion. In particular, since the company entered the automobile manufacturing field in 1996, it has rapidly grown into a key brand for the economical car in China through its flexible operation mechanism and continuous concept innovation, ascending into the "3+6" mainstream pattern of the domestic Chinese automobile manufacturing enterprises at an average annual growth rate of 117%. In 2003, its business scale ranked the 331st place among the country's top 500 enterprises, 25th place among top 100 enterprises in Zhejiang Province, and was appraised as one of the enterprises with fastest and best growth in the Chinese automobile industry over the past 50 years.
Headquartered in Hangzhou, Zhejiang Province, China, and with four major manufacturing bases in Linhai, Ningbo, Taizhou and Shanghai, the company now has an annual production capacity for 200,000 complete vehicles, 200,000 engines and 150,000 gear boxes. With the successive completion and operation of the new projects in Ningbo, Taizhou and Shanghai, the complete vehicle annual production capacity of the company will rise to 300,000, and the engine annual production capacity will also rise to 300,000.
Zhejiang Geely Holding Co., Ltd. has set up four major sales companies and round-the-clock after-sales service companies, as well as spare parts companies orientated towards the domestic and overseas market; it has altogether 109 4S automobile franchised stores, 489 brand distributors and 569 service stations, providing sales and after-sales services for Geely, Beauty Leopard and Maple brand series, two-compartment and three-compartment economical cars and urban sports cars. Geely already has 300,000 terminal users in the country, and its ranking in the national market has risen from the tenth place in 2003 to the current seventh place, with the economical car market share of 21.4%. Through experiencing the marketing, care service, public welfare activities and car racing activities, the popularity and credit of Geely has seen great improvement.