AUTO INDUSTRY NEWS

BMW opens second plant in Shenyang, China

BMW opens second plant in Shenyang, China image

Text: / Photos: BMW Press | posted May 24, 2012 18:15

Engine plant starts production at a third location in Shenyang

BMW AG and its joint venture partner, Brilliance China Automotive Holdings Ltd., have opened today the most sustainable automobile production facility in China and one of the most innovative and flexible automobile production facilities worldwide.

“With our second plant in Shenyang, we will increase our capacity in China to 200.000 vehicles. Together with our partner Brilliance we will further invest € 500 million in China, thus preparing for future growth”, said Norbert Reithofer, Chairman of the Board of Management of BMW AG, at the official ceremony to mark the opening of the company’s second automobile plant in China in the city of Tiexi on Thursday. “With this investment we will increase total capacity of both plants to 300.000 units per year over the medium term. Due to our flexible production structure we will be able to produce up to 400.000 vehicles depending on market development”, stated Reithofer.

This brings the two partners’ total investment in Chinese locations to around € 1.5 billion since 2009, the year the company announced it would build a second plant.

ribbon cutting

“China is one of the BMW Group’s top three markets worldwide and offers tremendous potential for growth, especially in the premium segment”, continued Reithofer. BMW AG has been producing BMW 3 Series and 5 Series models for the Chinese market with its long-standing joint venture partner, Brilliance, in Shenyang since 2003. The opening of the second vehicle plant in China will expand the range of locally-produced models to include the BMW X1. Production of the long-wheelbase version of the BMW 3 Series will also begin in Tiexi over the coming weeks.

Friedrich Eichiner, member of the Board of Management of BMW AG, Finance, explained at the opening ceremony in Tiexi: “Building a new plant in Tiexi was the next logical step in meeting growing demand in the Chinese market. As a global company, we aim for balanced, sustainable growth – in established markets and in emerging growth regions.”

production line

The two partners have also begun producing 2.0 liter four-cylinder petrol engines at a third location in Shenyang. The engine plant has an initial capacity of 200,000 engines, which will increase in line with the expansion of the two automobile plants. The launch of engine production will allow the joint venture’s two production locations in Dadong and Tiexi to be supplied locally. “The opening of the only engine manufacturing facility outside of Europe is a major step for BMW Brilliance Automotive and underlines our commitment to the growth market of China,” explained Friedrich Eichiner.

Over the next few years, more than 2,000 new jobs will be added to the roughly 8,000 already created in Shenyang. In conjunction with the enlargement of production capacities a further 500 jobs will be created.

The opening of the two plants expands the company’s global production network to 29 locations in 14 countries.