Jobs at BMW's Swindon Pressings, which makes panels for MG Rover's cars, are more secure following an industry-leading deal with China's leading car manufacturer.

MG Rover Group and China Brilliance Industrial Holdings (CBIH) have entered into a long-term strategic Alliance and co-operation agreement to finance, develop, manufacture and market world-class automobiles for the mutual benefit of both partners.

Swindon Pressings could well benefit from the deal in terms of technical advice for the project, BMW already having automotive agreements in place in China, and in that it should stabilise MG Rover's position in the market.

Kevin Howe, MG Rover, chief executive said: "This is a wide-ranging global alliance that spans the full breadth of both company's activities, and presents many opportunities.

"I am delighted that we have so much in common.

"Brilliance has achieved quite outstanding results in a very short space of time and demonstrates world class standards in everything it does.

"It is clearly the leading automotive manufacturer, in the world's fastest growing car market.

"China will be one of the most important markets for the alliance."

The alliance provides the potential for MG Rover derived cars to be manufactured in China, including those that will be jointly developed.

This will include the new medium-sized car, for which the styling direction was previewed at the recent Geneva Motor Show.

Plans have also been put into place for the joint development of a new small car and consideration will be given to the development of additional new models. Equally the opportunity also exists for MG Rover to manufacture and market CBIH derived vehicles.

Dr Brian Sun, chief executive of CBIH, said: "From the beginning it was very clear Brilliance and MG Rover have a similar philosophy and operating style.

"We are both ambitious, clear in our vision and quick with decision-making.

"Equally important is the fact that MG Rover and CBIH do not have products that compete directly, which means we can take the full benefit from our alliance, without our plans conflicting in any way."

The companies will co-operate on the supply and manufacture of engines and development of a new range.

MG Rover will provide considerable technical support and assistance in order to establish the necessary manufacturing processes and systems in China.

This will extend to the establishment of a joint research and development centre in China. The alliance will seek significant cost benefit from larger manufacturing volumes, going forward.

A joint component sourcing strategy committee will be established in order to maximise the economic benefit of the companies' combined purchasing.