Nanjing Automobile Corp (NAC, 南京汽車), the new owner of MG Rover, announced on Monday a ?10 million (US$18 million) investment in the British automaker's mothballed plant.
The Chinese car manufacturer said that the "initial" investment will fund activities at part of MG's Longbridge site south of Birmingham in west central England.
The site currently employs 80 people but more workers would be recruited in the future as the business developed, the Chinese group added.
NAC, which acquired the historic British car manufacturer after it went bankrupt in April last year with the loss of 6,000 jobs, intends to relaunch production of the MG TF two-seat sports car at Longbridge early next year.
It has penciled in a commercial launch for the vehicle in the latter half of the year.
NAC president Yu Jianwei revealed that 15,000 cars will be made at the factory for the British and European market but models could also be exported further afield.
Workers at Longbridge, which in its heyday as the Austin Motor Co produced 10,000 cars per week, will assemble the cars from components supplied directly from NAC's production facility, which is currently under construction.
Directors hope that the facility, in the Chinese city of Nanjing, will provide components for 200,000 cars and 250,000 engines a year.
Plans for the relaunch are being developed by a joint Anglo-Chinese management team and Nanjing announced it would re-establish a research and development center at Longbridge to work on future models.
"Car enthusiasts all over the world can be reassured that MG, one of the great motoring brands, is safe in our hands," Yu said.
"We are committed to rebuilding the marque in major markets with cars supplied from the UK or China as appropriate," Yu said.
But although Dave Osbourne of the Transport and General Workers Union welcomed NAC's project for limited car production at Longbridge, he said that the plans had failed to live up to expectations.
"Nanjing has said today it intends to invest ?10 million to resume work at the Longbridge site and aims to produce 15,000 units a year with a workforce of less than 200," he said.
"This is in stark contrast to earlier public indications from Nanjing of 100,000 units and 1,200 jobs," he said.
"Former MG Rover workers had been led to believe there were more ambitious plans than these, which is why today is a disappointment," he said.
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