A NORTH-EAST electric vehicle firm is on the verge of securing a major deal with the Hong Kong government.

The Tanfield Group’s Smith Electric Vehicles division is understood to be in advanced talks with the territory’s government to provide electric minibuses.

It comes as Hong Kong is actively encouraging the adoption of electric vehicles.

The area has serious air quality issues with poor visibility for almost one third of the year and soaring cases of asthma.

This is despite an extremely low level of car ownership, with 90 per cent of its population of seven million using a fleet of 35,000 taxis, public buses and light buses, as well as the rail network.

The Hong Kong government is understood to have already bought about 15 Smith vehicles over the past 18 months.

This should pave the way for the latest deal, which could see an order placed for a larger number of the vehicles from the Wearside firm.

The Hong Kong government said its transport department was processing documents for the supply of electric commercial vehicles from British manufacturer Smith.

Hong Kong’s acting secretary for the environment, Kitty Poon also revealed that Nissan had agreed to bring forward its shipments of the first electric Leaf cars for Hong Kong to between February and April.

Leaf cars for the European market will be built in Sunderland from 2013.

Dr Poon told legislators in the territory that the government would continue to promote electric vehicles and encourage every sector of the community to adopt this green mode of transportation.

Representatives of Smith are understood to be in the territory at present with the aim of paving the way for a deal.

Last week, one of Smith’s vehicles attracted media attention over there after being put on display outside a lecture on sustainable transport which was being delivered by British scientist Professor Julia King and co-organised by the Hong Kong Polytechnic University and the British Council.

Ms Smith presently supplies bluechip companies including Coca-Cola and supermarket chain Sainsbury’s.

On January 1, a merger was completed between the firm and its US partner in a £9.74m deal.

The Smith Electric Vehicles division was bought by its US partner Smith Electric Vehicles US, in which the North- East firm held a 49 per cent stake.

Under the deal, Tanfield retains the same percentage stake in the new, enlarged company.