The midlands-based company has completed negotiations to transport a production plant from Poland to Coventry to build a new range of light commercials. Three years ago LDV and Daewoo were jointly developing a new generation of light commercial vehicles to be built by Daewoo in Poland – before the South Korean company was declared bankrupt.
Only now is LDV in a position to move ahead with the project, which could see it producing 50,000 vehicles a year within four years. Following the disappointment with Daewoo, LDV chief executive Allan Amey unsuccessfully tried to find a new partner, including Volkswagen.
Now he has agreed to pay £125m to Daewoo's receivers to acquire the Polish factory Gemini Tooling to re-equip an LDV facility in Coventry. The haul includes more than 6,000 tonnes of production equipment that will take 250 trucks and 18 low loaders around two months to move to the UK.
Discussions are also underway to find global distribution partners to re-brand LDV vehicles in their own markets. Success could see production rise fourfold.
Amey estimates the company lost 18 months due to the Daewoo setback, but says LDV can now get “back on track”.
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