Troubled car manufacturer MG Rover is recruiting 200 more technical staff in preparation for its possible joint venture with Chinese car makers. This is despite the fact that the company is currently preparing to lose up to 5,500 people from its engine production workforce.

The new staff will help develop a new medium-sized and small-sized car in conjunction with the Shanghai Automotive Industry Corporation (SAIC).

Up to 200,000 new cars designed under the initiative will be produced at MG Rover’s Longbridge plant each year.

Some analysts expect that all of MG Rover’s engine production could shift to China within 10 years.