CPP set to bring car production back to Browns Lane
Friday 2 September 2011
Car production is set to return to Browns Lane in Coventry after CPP Global Holdings Ltd signed an exclusive purchase agreement with the owners of the site.
The Coventry-based automotive specialist has signed an exclusive option agreement to purchase 23 acres from Advantage West Midlands and plans to bring all its current operations in the city to the new location within five years.
It intends to submit planning applications before the end of 2011, with the multi-million pound redevelopment project anticipated to start in the second quarter of 2012.
CPP has applied for part-funding for the project through the Regional Growth Fund - and the success of that bid will be key to the progress of the Browns Lane project.
The company currently operates from five sites across the city and employs around 250 staff working on component manufacturing, body-in-white engineering, prototype vehicle production and low-volume vehicle assembly.
Founder and co-owner Brendan O'Toole said that the move would see the company "expand significantly". Full details of the automotive group's proposals will be announced when planning approvals are finalised.
He said: "This is a decisive moment in CPP's strategy to cement Coventry's reputation as a world-class centre of automotive excellence. In conjunction with my business partner, Vladimir Antonov, we've successfully and significantly grown CPP over the last few years, with further expansion planned.
"Bringing together the group's various businesses and facilities within a single, purpose-built location is possibly the most exciting part of the entire plan.
"And as our success and growth continues - facilitated by our move to Browns Lane - this will also benefit our wide supply base, the majority of which is in and around Coventry."
Mr O'Toole founded CPP 16 years ago and it currently has its headquarters at the Seven Stars Industrial Estate in the city.
In January, CPP acquired Bowler, the manufacturer of all-terrain supercars and a month later signed a memorandum of understanding to acquire Spyker Cars from its holding company. That memorandum of understanding has now lapsed but CPP remains confident of concluding a deal to acquire Spyker Cars.
In July, CPP confirmed that it was operating a joint venture with the Italian design studio that operates the Zagato brand under licence from the Zagato family.
Mr Antonov, is a passionate car enthusiast and chairman of Convers Group, a Russian investment business, whose interests include financial and industrial companies as well as franchises in a number of sports, media, leisure businesses.
He said: "The Browns Lane redevelopment demonstrates CPP's commitment to remaining in the heart of Coventry where it has access to the city's rich automotive skills base.
"It will help CPP to create hundreds of new jobs, establish advanced new facilities and is a major investment into the economy of the city and the surrounding region.
"I'd like to thank Advantage West Midlands and Coventry City Council for believing in our vision and for their support in taking us a major step closer to achieving our long-term objectives."
John Mutton, leader of Coventry City Council, said: "This is a massive boost for the city and the local economy - creating new jobs for Coventry people is a key priority for the Council and I'm delighted we've been able to play a part in bringing car production back to Browns Lane.
"CPP has recognised that we have the skills and commitment needed for quality car production right here in the city, and I'm looking forward to them playing a big part in Coventry's future economic success."
Mick Laverty, Chief Executive at Advantage West Midlands, said: "This region's track record of innovation and achievement in the automotive industry is world renowned - and our agreement with CPP is an important boost to a very competitive sector.
"AWM recognised early on that Browns Lane would be a priority site that would create skilled jobs and support future economic growth in Coventry.
"Even though the agency is on a closure footing, we are continuing to work hard to deliver the best possible outcomes for the West Midlands region."
Caption for photo:
l/r, Brendan O'Toole (CPP), Cllr John Mutton (Leader, Coventry City Council), Linda Bigham (Coventry City Council), Steve Holland (Advantage West Midlands).
