The company that makes London's famous black taxi cabs has clinched a deal that will see them made and sold in China.

Coventry-based Manganese Bronze has licensed production of the taxis to the Chinese car manufacturer Brilliance China Automotive Holdings (BCA).

Under the deal, the Chinese company is to pay Manganese a one-off charge of �2.7m ($3.9m) and a further royalty fee for each vehicle produced in China.

The contract covers a 20-year period.

Safety appeal

"There should be reasonable market potential for the purpose-built taxi in the Chinese markets because it provides far better safety, comfort and passenger accessibility than all existing taxi products in the country," said Yang Rong, chairman of BCA.

The Chinese company aims to sell black cabs in China, Hong Kong, Macao and Taiwan.

Black cabs, one of London's distinctive features, are currently exported to more than 25 countries in Europe, the Middle East, Africa and South-East Asia.

London Taxis International, wholly owned by Manganese, produces about 2,000 vehicles a year.

On Monday, the company announced an 8% sales increase over the past five months, with 987 vehicles rolling off its Coventry production line.

Shares in Manganese Bronze, which had slumped to their lowest-ever price of 59p in November, rose more than 10% to 88.5p on the news.