Chinese automaker Zhejiang Geely has agreed to purchase Manganese Bronze Holdings, rescuing the maker of London's iconic black taxis after the company entered administration last year.

Geely will pay £11 Sterling (€12.8) to buy Manganese Bronze on a debt-free basis. They already owned a 20 percent stake in Manganese following a 2006 joint-venture deal under which the UK company bought China-made components and body parts.
The purchase will help Zhejiang Geely speed up its expansion following the purchase of Volvo Cars in Sweden.

"We are determined to restore the fortunes of this totemic marque," Li Shufu, head of Geely said in a statement on Friday. "We are a long-term and committed investor and we believe the illustrious past of the London black cab can be matched by a successful and healthy future."

London has almost 23,000 licensed taxis -- those that can legally be hailed in the street. About 1,400 new ones are registered each year, according to Manganese Bronze, a market worth about £50 annually.

Manganese Bronze went into administration on Oct. 30 after the discovery of defects in steering boxes provided by a Chinese supplier. The steering problems led to a recall and production freeze, cutting off cash flow. Manganese Bronze currently employs 107 people. The business suffered a pretax loss of 3.6 million pounds in the first half of 2012 as revenue dropped 11 percent.