BMW Group is planning further expansion in China and is increasing its previously announced investment of EUR560m (US$802m) to EUR1bn (US$1.4bn) at its Shenyang joint venture production plant.

The additional investment, which will be shared with partner Brilliance, will be used to build press and paint shops and to expand infrastructure at the new plant in Tiexi to increase production capacity.

BMW announced that it would build a second assembly plant in China, for the X1, in November 2009. Production is scheduled to start next year and will add more than 4,000 new jobs in addition to the 5,000 jobs so far created in Shenyang.

Production capacity will increase to more than 100,000 vehicles per year at the existing Da Dong facility and to 200,000 at the new plant in Tiexi. Over the long term, the two plants will have the combined potential for more than 300,000 vehicles a year, the company said.

BMW has been producing 3 and 5 series models in Shenyang with Brilliance since 2003 (its longer wheelbase 5 for the chauffeur-drive market is unique) and China is now the group’s third-largest market worldwide. The company sold 167,116 vehicles there in the past financial year – up 84%.

In the first four months of 2011, deliveries rose 70% to 79,306 vehicles.