Auto expansion in China

has signed agreements with Chinese car manufacturer

and

, an associate of Geely, to hold equity in a joint venture company, Shanghai LTI Automobile Ltd. (Shanghai LTI).

The venture, based in Shanghai, will produce four different vehicles: the London taxi, a limousine variant of the London taxi and two additional large saloon cars.

Total investment in the joint venture is forecast at £53m, which will be invested in press tools, body-in-white facilities and assembly operations. Geely will invest a further £33m in purchasing land and constructing buildings including paint facilities. These facilities will be leased to the joint venture.

The total investment in the joint venture of £53m will be funded from shareholders equity of £29m and bank loans of £24m.

Manganese Bronze will satisfy its 48% share of the joint venture by issuing 5.7 million new ordinary shares to Geely based on a valuation of £2.50 a share. Geely and Maple will respectively own 51% and 1% of the joint venture and will fund the balance of the shareholders equity of £15m.