Production of vans at the LDV plant is set to restart by July following the last-ditch rescue of the firm.
Malaysian giant Weststar, which is finalising its purchase of the Birmingham-based business, issued its first official statement confirming it had entered into an agreement with LDV’s owners GAZ to acquire its entire interest in the van firm.
The agreement to buy LDV, which employs 850 workers, is subject to due diligence, financing and various approvals.
“After completion, Weststar intends to continue production and research at the Birmingham facilities using best practices including the highest standards of labour and energy efficiency in the industry,” the staement said.
“The plant and distribution network will continue to offer best-in-class products and owner experience in the UK and European markets. Buyers of new and used vans are urged to continue to give LDV products serious consideration for their next purchase and to be reassured on the continued availability and quality of parts during its service life.”
Weststar said that to make LDV products more affordable in the developing world, it planned to expand the scope of manufacture in Malaysia and other low-cost manufacturing centres in regional trade blocs.
“In addition to production, Birmingham will remain the centre of engineering excellence where designs for new low-carbon emission original equipment manufacturer standard products and special vehicle option conversions will originate.
“This strategy will see employment and value creation in the UK and Malaysia significantly increased over time.”
Weststar said it appreciated the help of the government which offered a £5m bridging loan to help keep the company afloat while the deal is completed.