Monday 18 March 2019

The new factory in Shenyang

BMW opens new battery factory in China

SHANGHAI, November 1, 2017

BMW Group in collaboration with its partner, Brilliance China Automotive Holdings, has opened a new “High-Voltage Battery Centre” in Shenyang, China.

The battery factory will supply the nearby Dadong plant, which is operated by the BMW Brilliance Automotive (BBA) joint venture and will produce the BMW 5 Series Plug-in Hybrid for the local market, said a statement from the company.

The BMW Group is integrating its battery factories into the existing international production network, it said.

Oliver Zipse, member of the board of management for production, BMW, said: “The innovative centre is an important step in our electro-mobility strategy.”

“It is the first battery factory of any premium automotive manufacturer in China and already the third in our production network, after Germany and the US,” he said.

“By 2025, we expect our electrified BMW and Mini models to account for between 15 and 25 per cent of global sales. This adds up to several hundred thousand vehicles per year. It therefore makes sense for us to integrate electro-mobility into the existing production system,” he added.

Alongside the electric motor, the high-voltage battery is a central element of partially and fully-electrified vehicles. In-house production gives the BMW Group a decisive competitive advantage by securing know-how in new technologies, gaining key systems expertise and leveraging cost benefits.

The company already produces electrified vehicles at 10 locations worldwide. The high-voltage batteries needed for these models come from the BMW Group plants in Dingolfing, Spartanburg and now also Shenyang. The Dingolfing plant will play a leading role within the network as the centre of competence for electric drive systems, said a statement.

Between January and the end of September, the BMW Group delivered a total of 68.687 BMW i, BMW iPerformance and electrified Mini vehicles to customers worldwide – an increase of 64.2 per cent.

With nine electrified cars currently available, the BMW Group is one of the leading suppliers worldwide. The company plans to sell 100,000 electrified vehicles worldwide by the end of the year.

The Shenyang location, with its Dadong and Tiexi automotive plants and engine plant with light-metal foundry, plays an important role in the BMW Group’s global production network. It contributes to the strategy of globally balanced growth, with production capacity in the respective regional markets, it said.

The BMW Brilliance Automotive joint venture was founded in 2003 and encompasses production and sales of BMW automobiles in China, as well as local development tasks. The joint venture employs more than 16,000 people, while the BBA supplier network comprises around 350 local suppliers.

In 2014, the BMW Group and Brilliance China Automotive Holdings Ltd. extended the contract for their Chinese joint venture early – four years before the current contract expired – and laid the foundation for deepening the successful cooperation. The extended contract is valid for 10 years (from 2018 to 2028), it stated. – TradeArabia News Service

Tags: | BMW | China | factory | Battery |

More Industry, Logistics & Shipping Stories

calendarCalendar of Events