China's State Development and Reform Commission has given a go-ahead to the purchase by the Nanjing Automobile Group of Britain's collapsed carmaker MG Rover and PTL, another British company.

With the approval, the transnational purchase deal will be executed on a full scale, sources with the Nanjing Automobile Group said.

Through the purchase deal, labeled "Scheme 566", the Nanjing Automobile Group will have the capability of producing 200,000 motor vehicles, 250,000 engines and 100,000 gearboxes every year, sources with the group said.

Early preparation for the construction of Scheme 566 has commenced.

Wang Haoliang, chairman of the board of Nanjing Automobile Group, said the production lines and the research and development center of Scheme 566 will be located in Nanjing, capital of east China's Jiangsu Province.

"We will produce top-grade MG-75 sedans in Pukou of Nanjing. The first car is hopefully to be rolled off the production line in the first half of 2007," Wang said.

Production of MG75 sedans will fill in the Group's gap in the top-notch car market, industry experts say.

The British automaker, together with PTL, filed for bankruptcy in April 2005.

Source: Xinhua