Rover's new Chinese owner has revealed building work has started on a new £200 million plant to make cars in the Far East.

The site, which could make up to 200,000 cars and 250,000 engines a year, is expected to start production within the next 18 months, it has emerged.

Nanjing confirmed that the factory would pave the way for the manufacture of the new Rover 45 and 25 models and Powertrain engines in China.

The arrangements could see the return of some volume production at Rover's former Birmingham site.

The joint venture company in the UK based at Longbridge will produce the MGTF, the ZT and other variants.