Manganese Bronze says it finalized details

Manganese Bronze says it finalized details of Chinese joint venture


LONDON: Manganese Bronze Holdings PLC, the maker of London's iconic black cabs, said Friday it has finalized the details of its joint venture with Geely to produce the taxi, a limousine and two large saloon cars in Shanghai, China.

The final stage of the process was completed when 5.7 million new ordinary shares, which have been issued to Linkstate Overseas Ltd., a unit of Geely, began trading on the London Stock Exchange, Manganese said in a statement. Geely now owns about 23 percent of the company.

Manganese Bronze announced in October that the taxis would be built outside England for the first time in their 60-year history in a bid to attract new buyers and lower costs. It said it had signed a 53 million pound (US$100 million; €78.51 million) agreement with China's Geely Holding Group to build 20,000 cabs a year in Shanghai.

Manganese Bronze will now work with Geely to finalize the process of beginning production. The planned capacity of the Shanghai LTI facility is 40,000 vehicles.

The deal gives Manganese Bronze its first manufacturing base overseas, access to the Hong Kong-based company's chain of low-cost suppliers and a gateway to the rapidly expanding Chinese car market.

Manganese shares were flat at 871.5 pence (US$17.36; €12.96) on the London Stock Exchange.