THE European Union Commission has approved a £25 million grant by the UK Department of Trade and Industry to help fund a strategic partnership between Birmingham-based van maker LDV and Korean manufacturer Daewoo. The official EU green light means the companies can forge ahead with plans to design and build an integrated range of medium and heavy light commercial vehicle.

Production of a Convoy/Pilot replacement and a heavier van will begin at the start of the new millennium at LDV's UK factory and at Daewoo's plant in Poland. Within the scope of the 'Gemini Project' partnership LDV will invest £160 million in development and plant costs, potentially create up to 2,000 new jobs, supply vehicles for its own customers and for Daewoo, quadruple output to 80,000 vans a year and lift export volumes to 75% of LDV production.

Daewoo is expected to have an equity stake in LDV of 50% in return for its economies of scale in worldwide component sourcing and in development facilities.