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Brilliance China to expand BMW production with second factory

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Brilliance China Automotive Holdings will further boost production of BMW cars by building a second manufacturing plant in Liaoning province with an annual capacity of 100,000 vehicles in the third quarter, according to its top executive.

Chairman Wu Xiaoan disclosed the expansion plan yesterday after revealing that Brilliance had sold 32,000 BMW cars last year, a 58 per cent jump from 2006.

Mr Wu also said it was time to break the silence on the new project after the company had completed a difficult turnaround during the past few years.

The carmaker has been sputtering since its founder Yang Rong fled to the United States amid accusations that six years ago he committed economic crimes, charges which he has denied.

'It is expected that sales of BMW will grow 20 per cent this year,' Mr Wu said. 'The new manufacturing plant is regarded as the second phase of expansion and probably will be in Shenyang, Liaoning province.'

The plant will be owned by Brilliance China and BMW, each holding 50 per cent. Mr Wu did not disclose how much money would be invested in the plant, though he said the figure would be announced later this year.

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