Shenyang, China – The BMW Group has signed a memorandum with its partner Brilliance Automotive Holdings to build a second auto assembly plant in China.
The new plant represents an investment of €560 million. Construction is scheduled to begin in 2010, with the start of production slated for early 2012.
“Brilliance Automotive Holdings Limited is a reliable joint venture partner with whom we have already worked successfully for more than six years,” said Friedrich Eichiner, vice-chairman of BMW Brilliance Automotive. “Our plant has reached its capacity limit, so we are now taking the next step. The decision to build a second plant demonstrates that we are investing in our future in China and that we intend to participant in the strong growth of the Chinese market. It is also an important strategic step towards reducing our exposure to currency fluctuations.”
The joint venture has produced approximately 150,000 BMW 3 Series and 5 Series since 2003. In a first step, the annual production capacity will increase from 41,000 to 75,000 units. Upon completion of the second plant, total annual production capacity will be 100,000 units. The project will also add 1,000 new jobs to the existing 3,300 jobs at the facility. China is the BMW Group’s fourth largest market.