The new Chinese owners of MG Rover yesterday announced plans to create 1,200 jobs at the carmaker's main UK factory.

Two of the three final assembly production lines at the Longbridge plant, in Birmingham, will be retained, as well as the site's paint shop, said Nanjing Automobile Corporation.

Four or five new models are being considered. The company plans to build 100,000 cars a year at Longbridge within five years.

Some of the production systems are being shipped to China, but Nanjing said that it intended to restart production in 2007, although some cars could be built at the end of next year if the development of engines progresses smoothly.

Wang Qiu Jing, vice president of Nanjing, said: "The viability of the UK business is dependent upon the success of our new operation in China because it allows us to take advantage of a competitive global supply chain and shared new product development."

Tony Woodley, general secretary of the Transport and General Workers Union, said he was convinced Nanjing was genuine about the plans.

"However, they still don't have sufficient finances, including from the (UK) government, and we will help them to do that."