West Midlands automotive company CAD CAM Automotive (CCA) has completed a multi-million pound investment deal with China Red Sun Group which paves the way for a major expansion programme which will create up to 1,000 new jobs.
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. Red Sun owns thousands of patents and market entry permissions in international markets, especially in its original global international brand Automotive Forest Cloud Commerce and Great Health Industry Cloud Commerce.
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, said: “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.”
CCA signed the investment agreement with the Red Sun Group at an official event hosted by the China-Britain Business Council in London witnessed by Ms. Huang Lixin and officials from the China and UK governments.
Ms. Huang Lixin, in her speech, expressed her high appreciation and praise to CCA’s scientific research, innovation and future manufacturing ability. She fully affirmed CCA’s merger with Red Sun and stated that the Chinese government would provide strong support.
The Advanced Manufacturing and Engineering (AME) and corporate teams at Leamington-based law firm Wright Hassall acted for CCA on the investment deal.
Steve Halkett, corporate partner and part of the AME team at Wright Hassall, acted for CCA on the deal. He said: “CAD CAM Automotive is a hugely progressive company which has exciting growth plans.
“Completion of this investment deal heralds an exciting period in the company’s history and we look forward to working with Martyn and the team to support CAD CAM Automotive’s expansion.”