BMW Builds Second Factory in China

It looks like China attracts more and more attention from the automakers, as sales keep on growing despite the recession. On Thursday, BMW Group and Brilliance Automotive Holdings Limited signed a Memorandum of Understanding (MoU) to build a second production plant at the Shenyang site. The investment volume for the new plant amounts to 560 million euros. Construction work 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. 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 participate in the strong growth in the Chinese market,” stated Friedrich Eichiner, member of the Board of Management of BMW AG, responsible for finance and vice chairman of BMW Brilliance Automotive (BBA).

“It is also an important strategic step towards reducing our exposure to currency fluctuations,” Eichiner added.

Since 2003, BMW produced about 150,000 3 Series and 5 Series in China and invested about 450 million euros. The aim is to increase annual capacity from 41,000 to 75,000 vehicles. When the second plant will be fully functional, the annual capacity should hit the 100,000 vehicles per year mark.

“We are aiming to set a new sales record in China in 2009,” said Eichiner.