Taxi parts production moving to China

Manganese Bronze said the parts for its TX4 vehicles will be made in Shanghai after a key UK supplier's decision to cease production of a specialist painting process later this year.

Manganese's Coventry-based London Taxis International arm has manufactured the cabs since 1948, but it will now move to an assembly role.

Chief executive John Russell said: "Our UK consultation process is almost complete, which will lead to a smaller, lower-cost UK operation with a much greater level of supply from China."

The firm said its UK sales performance "continued to be adversely affected by current economic conditions", with the London market hardest hit.

"UK sales performance continues to be challenging as drivers' confidence to commit themselves to the purchase of a new taxi remains weak due to uncertainty about the general state of the economy," it said.

Manganese's underlying pre-tax losses widened to 8.1m last year from 6.2m in 2008, with UK vehicle sales falling from 1,951 to 1,724.

Volumes in the second half of the year were below the first half despite the impact of the Government's scrappage scheme, while the group has also racked up additional costs from the fall in the value of the pound.