By Fraser Hughes

A RENFREWSHIRE company has launched a global venture in China to capitalise on the growing car market there.

Bridge of Weir Leather, part of the Scottish Leather Group, is to enter a joint venture with Zibo Polygrace Dahuanjiu Tannery Group Ltd, of Shanghai.

Three million dollars has been invested in state-of-the-art automotive leather finishing, testing and cutting facilities, which will allow the company to increase its share of the Chinese market. Bridge of Weir already exports its specialist quality upholstery leather to more than 30 countries worldwide.

The deal will be signed by Business Secretary Lord Mandelson, who is visiting China next week.

He said: "Zibow is a great example of British and Chinese technology transfer and business collaboration. China has much to offer British companies and Bridge of Weir Leather is leading the way with this substantial investment."

The new company, to be known as Zibow Automotive, will be based in the Shandong Province of China on the manufacturing site of the venture partner.

Zibow plans to target car manufacturers based in China and is forecasting a turnover of £12million in year five. Initially it will concentrate on the domestic Chinese market but will look to expand its operation to export into the Far East from China.

The joint venture will create 20 jobs in the first year with additional recruitment planned. Most of the hides will be tanned and dyed at the company's Bridge of Weir tannery and exported to China for finishing.

Hank Zhou, chairman of the new joint venture, said: "This will allow Bridge of Weir Leather to further increase its reach into the Chinese and Asian markets and help build a global brand.

"We have already secured business from Swedish car manufacturer, Volvo, who will be the first client to work with us and we plan to target all other China based European, Japanese and US manufacturers as well as fast growing Chinese manufacturers.

"We look forward to a happy and prosperous partnership."

A Chinese Leather Industry Association spokesman said: "We are pleased that Zibo Polygrace Group has established a joint venture with the Bridge of Weir Leather Company Ltd from Scotland.

"Combining the strengths of both companies will no doubt prove to be a winning combination. "

With such ambitious plans, Zibow are confident that they will exceed a turnover of US £1.75m in the first year.