The National Post reports that the Austrian unit of Magna International said Tuesday it may build a new production facility as rumours surface that it may get a new contract from BMW.

Magna's factory in Graz, Austria, currently builds BMW's X3.

The Post's Page Two column reports that Magna Steyr spokesperson Daniel Witzani said: "We are considering it (building a production plant)." He declined to give further details or a time frame regarding any future construction, the Post said.

He also refused to comment on an article in the Austrian daily newspaper Der Standard citing rumours that Magna Steyr might get a contract from BMW to produce its new sports wagon.