Shanghai (ZXZC)- BMW Brilliance, a joint venture between BMW Group and Brilliance China Automotive Holdings, kicked off on April 1 the construction of its new Tiexi plant, which is expected to largely ramp up BMW's production capacity in the world's largest auto market.

Covering an area of 3.2 square kilometers, the extension project is designed to be fitted with flexible manufacturing assembly lines available for mixed production of BMW-branded BEVs, PHEVs and fuel-powered vehicles.

(Existing Tiexi plant, photo source: BMW Brilliance)

The completed new Tiexi plant will be equipped with dedicated workshops for stamping, car body building, painting, and assembly, and create thousands of jobs to local residents. It will be part of BMW's largest production base in the world together with the existing Tiexi plant, Dadong plant, a powertrain factory, and a R&D center located in Tiexi.

In October 2018, BMW and Brilliance Automotive announced they would expand their joint venture until 2040. BMW also said it planned to invest €3 billion in the project, further expanding its production plants in China.

(Existing Tiexi plant, photo source: BMW Brilliance)

In Tiexi, a new plant on the existing plant ground would be built to double the site's capacity, while extensive remodeling and expansion measures would target the neighboring plant in Dadong. As a result, the total annual production capacity of BMW Brilliance’s plants would increase to 650,000 units from the early 2020s.

BMW does not halt investment or production businesses in China due to the coronavirus pandemic. In late Feb., the joint venture saw its 3 millionth China-built BMW-branded vehicle roll off the assembly line at Dadong plant, Shenyang.