Nanjing Automobile Corp, the Chinese owner of the failed British carmaker MG Rover, said it will begin producing MG engines this month, a step toward reintroducing the oldest English car brand on the world market.

The company plans to manufacture 1.8-liter, 1.8-liter turbo and 2.5-liter V6 engines on MG assembly lines this month, according to a statement yesterday.

The assembly lines were dismantled and shipped from Britain to the Chinese company's Jianglin plant in Nanjing after it outbid Shanghai Automotive Industrial Corp to take over MG's production facilities for 53 million pounds (US$100 million) last July.

"The move represents crucial progress for our car projects, and the power train systems are the most valuable assets," said Sun Honggen, general manager of Nanjing Auto MG Power Train Co Ltd.

The power train program is part of the global revival plan for the British car brand. It follows a new vehicle plant in Oklahoma City in the United States in addition to resumed production at the old MG Longbridge assembly plant near Birmingham, England.

Nanjing Auto aims to produce 50,000 engines annually in another new plant in its home city starting next year.

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