Van maker LDV will restart production by July once its takeover deal is finalised.

Weststar, a Malaysian company which already assembles LDV vans in the Far East from kits bought from the Birmingham manufacturer, earlier this month agreed to buy the company after the UK government provided a £5m four-week bridging loan.

Weststar said it intended to maintain production at the company's plant in Birmingham, but also to expand manufacturing in Malaysia.

LDV, previously owned by Russia's GAZ Group, was poised to enter administration before the Weststar rescue deal. It had ceased production in December due to the slump in demand amid the recession.