BMW is building a new THB600m (US$18.2m) engine assembly plant in Thailand with its local partner Powertech Engine Assembly, BMW director Klaus Draeger told local reporters.

It will be BMW's first engine plant to be located in the ASEAN region and is scheduled to begin assembling four-cylinder diesel engines in December. Assembly of four-cylinder petrol engines will begin towards the end of 2016.

BMW also plans to invest a further EUR9m to improve logistics and materials handling at its vehicle assembly plant in Rayong, which is operated by BMW Manufacturing (Thailand), to increase annual capacity to 10,000 cars.

The plant began assembly of the Mini Countryman in August and also makes motorcycles.