BMW strengthens its commitment to China
The BMW Group prepares the next chapter of its commercial development in China. With a long-term contract extension for the BMW Brilliance Automotive joint venture and investments for further expansion of production capacity.
In the context of the 15th anniversary of the creation of the BMW Brilliance Automotive joint venture, the German manufacturer announced the early extension of the company partnership.
The new contract has extended the validity of the 22-year agreement from 2018 to 2040. In addition, the Munich Group will increase its stake in BBA from 50% to 75%.
The agreement has already been signed, but the transaction is subject to the approval of the competent authorities and to the consent of the shareholders' meeting of Brilliance China Automotive.
At the same time, the joint venture announced an investment of over three billion euros in Shenyang in the coming years, for the creation of new production facilities and the modernization of the existing ones.
In Tiexi, a new plant in the area of the existing ones will double the capacity of the production site, while wide measures of modernization and expansion will be directed to the nearby Dadong factory.
The production capacity will remain the same, but the plant structure will be gradually expanded for future variants of the BMW models and for the expected growth of the market.
As a result, the total annual production capacity of BMW automobiles in BBA plants will gradually increase to 650,000 units since the early years of 2020, creating 5,000 new jobs.