In November 2009, BMW and its Chinese partner Brilliance announced their plans to build a second production plant at the Shenyang site. The investment volume for the new plant amounts to 560 million euros and the construction work was scheduled to begin in 2010, with the start of production slated for early 2012.
The two partners just announced that they broke ground earlier this week. Located in Shenyang in Northeast China, upon completion of the second plant there will be a total annual production capacity of 100,000 units. The production will be ramping up to around 200,000 units by 2012. BMW says that the plant’s maximum capacity is around 300,000 new cars – a figure nearly seven times the automaker’s current Chinese production capacity.
Around 1,000 further jobs will be added to the 3,300 existing jobs in Shenyang.
China is the BMW Group’s fourth largest market. The company has maintained its growth in the country throughout 2009 and in October reported an increase of 81% over the same period last year to 9,558 units. The BMW Group sold 71,952 vehicles (52,622 / +36.7 %) in the first ten months of the year, already exceeding the retail volume for 2008 as a whole.
Audi continues to be the leader in the premium automobile market in China due to their larger production numbers, but BMW hopes to close or narrow the gap with the second plant.