Bmw to invest around 1 billion euros to expand production capacity in China

Article by Christian Andrei, on May 8, 2011

The BMW Group plans to further expand its activities in China, according to the Chairman of the Board of Management of BMW AG, Norbert Reithofer, who made this announcement during the visit of the Party Secretary of the Chinese province of Liaoning, Wang Min, in Munich.

With this investment, BMW will be preparing for higher production capacities in the future via the construction of a press shop, a paint shop, and infrastructure at the new plant in Tiexi in the Shenyang region.

In November 2009, the BMW Group had revealed that it will open a second production plant in China that will be where the BMW X1 will be built. Production is slated to begin in 2012, with over 4,000 new jobs to be added in the coming years, aside from the approximately 5,000 jobs created so far in Shenyang.

The production capacity is planned to rise to over 100,000 vehicles annually at the existing Da Dong facility and to 200,000 at the new plant in Tiexi over the medium term.

In the long-term, the two plants are planned to have a capacity of over 300,000 vehicles each year, depending on market trends. Since 2003, the BMW Group has been making BMW 3 Series and 5 Series models in Shenyang with its joint venture partner, Brilliance. China is now the BMW Group’s third-largest market globally.

Reithofer said that the BMW Group vehicles are “very popular in China” and he expects its sales to go up further. He said that together with Joint Venture partner Brilliance, BMW will increase the previously announced investment of 560 million euros for its Chinese facility in Shenyang to about one billion euros.

Topics: bmw, china, production

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