BMW Expands South African Plant

German carmaker BMW today announced that it will invest up to 2.2 billion rand (approximately $288 million) in the South African production plant to expand local production. BMW hopes the Rosslyn, South Africa production facility will produce 45 percent more 3 Series units, which means the annual output will go as high as 87,000 models.

The company confirmed for Reuters that it has already signed a letter of commitment with the South African Department of Trade and Industry. The 1,100 employees at the plant will undergo further training within an 18-month advanced training programme, the company said in a press statement issued today.

"The BMW Group has never shied away from making decisions for the future in spite of the current tough conditions the motor industry is facing," BMW South Africa Managing Director Bodo Donauer said in a statement cited by the aforementioned source.

"This investment is a clear sign of the BMW Group's commitment to South Africa as a location and of its confidence in the growth of this economic region. In the current difficult economic situation in particular, we are standing by our belief in a corporate policy based on sustainability. We are providing a stimulus for further market development, to secure jobs and to strengthen the country of South Africa," Norbert Reithofer, Chairman of the Board of Management of BMW AG, emphasized in Munich.

BMW hopes demand for 3 Series models produced by the Rosslyn factory will continue to grow in export markets. The production facility currently builds vehicles for several export countries, including Japan, Taiwan, Singapore, Hong Kong and Australia.