BMW and Brilliance Automotive open new engine plant with light metal foundry in China

BMW Brilliance Automotive (BBA), a joint venture of the BMW Group and Brilliance China Automotive Holdings, opened a new engine plant with a light metal foundry in Shenyang. The new location will produce the latest generation of the BMW TwinPower Turbo three and four-cylinder petrol engines and forms part of the BBA production network based in Shenyang in Northeastern China. A total of around 2,000 BBA employees will work at the engine plant over the long term.

Oliver Zipse, member of the Board of Management of BMW AG, production, stated during the opening ceremony, “This is another milestone in the history of our joint venture and further confirms the success of our cooperation. The new, groundbreaking engine plant, complete with a light metal foundry, will play an important role within the BMW Group’s worldwide production network. It forms part of our strategy for globally balanced growth with production capacity in the respective regional markets.”

Yumin Qi, chairman of Brilliance China Automotive Holdings, also commented, “During the last years BBA has made considerable progress and set up an excellent, state-of-the-art production location in Shenyang. With these facilities we are able to deepen our presence in the Chinese market and to continue our success. We do appreciate the great achievements of BBA as well as the good cooperation with our partner BMW Group.”

Both the engine plant and the light metal foundry incorporate state-of-the-art production standards and will supply BMW Brilliance’s Dadong and Tiexi automotive plants. Capacity, which currently stands at up to 300,000 units per year, is tied to production volumes at the two automotive plants. The necessary investment was funded by BBA from its own resources; no additional capital was needed by the two JV partners.

BBA president, Dr Anton Heiss, further announced the next groundbreaking step for the JV at the event, “BMW Brilliance is recognized as one of the most successful premium manufacturers in China. Three new models are already in the pipeline for local production. One of these models, the BMW 2 Series Active Tourer, will be launched in the first quarter of 2016.”

Production of high-voltage batteries in future

In addition to combustion engines, the new engine plant will also produce high-voltage batteries for future plug-in hybrid models. As with the organisation of engine assembly, the project will entail close cooperation between BBA and the BMW Group to ensure knowledge transfer from high-voltage battery production in Germany.