Pictured above: (l-r) Professor Chris Rudd, Pro-Vice Chancellor, University of Nottingham; Mr. Graeme Walford, Chief Operating Officer; Romax Technology; Mr Li Feng, Economic & Commercial Counsellor, Chinese Embassy; Mr Liu Bo, Assistant President, Changan Automobile; Dr. Bryan Jackson, Chairman, East Midlands Development Agency (emda); Mr Brian Shaw, Managing Director, Business group, UK Trade & Investment

Changan Automobile Co, one of China's leading car manufacturers, today opened its new UK Research and Development Centre in Nottingham, where it will help to develop the low carbon vehicles of the future.

Changan Automobile Co is one of China's largest car makers. Its turnover has been increasing by around 30% annually, and its production and sales between January and April in 2010 ranked second in China.  The company's production capacity is 2.5 million units per year, and the establishment of the facility in Nottingham will enable Changan to collaborate with UK automotive R&D companies and also help UK companies win business with Changan.

Changan will be directly investing £20m to open and run the Nottingham operation over the next five years. In addition, the company will also be investing significantly on Research and Development in Nottingham, as it undertakes projects at the site over the coming years.

Changan's focus will be on engine and power-train development, and will also involve the development of low carbon vehicles, such as electric cars and HEV. The company will build collaborations with British companies, universities and research institutions, to improve Changan's R&D capabilities.

East Midlands Development Agency (emda), together with its East Midlands China Business Bureau, has been working intensively with Changan since March 2009, to look at the national and regional strengths in automotive R&D, particularly in powertrain, transmissions, chassis and new energy technologies.

emda successfully demonstrated the benefits to Changan of establishing a R&D facility in the region, due to the availability of skills and expertise within businesses and regional universities.

Changan Automobile owns 9 production bases and 21 whole vehicle factories in China, with its turnover in 2009 being approximately £6 billion. The business has ambitions to break into the global top ten motor manufacturers, and the establishment of the R&D centre in Nottingham is a vital part of this plan.

Mr XU Liuping, Chairman of the Board for Changan Automobile, said: "Setting up our own R&D centres overseas, including in the UK, is a vital stepping stone for Changan Automobile to utilise global resources and to enter the league of the world-leading car makers."

Changan is planning to recruit 40 powertrain and transmission engineers by the end of this year. The company's recruitment programme will then be accelerated to grow to a staff of around 200 people in three years.

The investment in the East Midlands came about as a result of a visit by emda's Chairman, Bryan Jackson, to Chongqing Municipality in China, in November 2007.

While in China, a Memorandum of Understanding (MoU) was signed to develop collaborative international partnerships between Chongqing Municipality and the East Midlands. The aim of the MoU was to identify leading automotive companies in Chongqing to establish Research and Development centres in the East Midlands and to identify suitable business and research partners in the region.

Speaking about Changan's investment, Bryan Jackson, Chairman of emda, said:

"The Changan investment into the East Midlands is hugely important for a number of reasons. As well as the very welcome new jobs and supply chain opportunities, the investment sees a coming together of Changan's global ambitions with a recognition of the technical expertise of our universities and our automotive companies.

"The East Midlands is also at the centre of the UK's automotive industry. Over 500 automotive manufacturers are already based in the East Midlands, making the region's automotive supply chain one of the strongest in Europe.

"I am particularly excited by Changan's plans for research and development over the coming years. I am sure Changan will find willing partners with which to collaborate , both in the East Midlands and the wider UK."

In July 2009, Chongqing Automotive Industry Office led a delegation of Chongqing automotive companies interested in developing business collaborations to the East Midlands, a visit which was hosted by emda and its China Business Bureau. Chongqing Changan New Energy Automotive was a major and active participant of the visit.

Once Changan announced its interest in establishing a UK R&D base, emda and the East Midlands China Business Bureau worked together with UK Trade and Investment, to ensure that the investment came into the region. Nottingham-based Transmission technology business, Romax, is also working with Changan and will play a key role in helping to establish the new centre.

UK Trade & Investment Chief Executive, Sir Andrew Cahn said: "Changan's investment is a huge vote of confidence for Nottingham, the East Midlands and the UK.

"Changan's R&D centre will be surrounded by world class automotive engineering firms, innovative high-tech companies and leading academic, science and research facilities. It's the best environment for Changan to achieve its ambition of becoming one of the world's top ten car manufacturers."

Changan has already set up R&D engineering centres in Beijing, Harbin, Jiangxi, Shanghai and Chongqing as well as two design centres, one in Turin, Italy, which was opened in 2005 and another in Yokohama, Japan, in 2008.

Changan invests heavily in R&D, which accounts for over 4.5% of annual sales for almost a decade. It plans to invest over RMB10 billion (approx. £1 billion) in R&D over the next 3 to 5 years.

Dr YU Chenglong, the Project Leader of Changan UK R&D Centre, said "After thorough research and consideration, we feel UK's advantages in automotive R&D, the range of its industrial capabilities which fit well into Changan's strategy and UK's openness to work with Changan strongly position UK to host Changan's R&D Centre. 

"The East Midlands, in particular, with its central location, availability of strong automotive R&D companies and research institutions within and around this region, and its long-established links with Chongqing, makes it the ideal choice for Changan.

"In the last few months, emda and its dedicated China Business Bureau have been highly professional, efficient and flexible in working with Changan providing excellent service and support. Changan plans to break into the global top ten motor manufacturers in the coming years. Changan UK will be working closely with UK automotive companies, emda and its dedicated China Business Bureau to achieve this ambition."

No.1 Nottingham Science Park, where Changan will be based, is an award winning, low energy technology and research facility owned and operated by specialist developer, Blueprint, and already home to a number of hi-tech occupiers in the low-carbon and ICT sectors. The site will provide space for immediate occupation, with expansion capability for the future.