Magna Steyr said it had been contracted to build BMW's redesigned Z4 sportscar at its Graz, Austria, factory.

"Production is scheduled to begin at the end of 2018. This business further strengthens Magna's position as the world's leading brand-independent vehicle contract manufacturer," Magna Steyr, which competes with other contract assemblers such as Finland's Mercedes supplier Valmet, said in a statement.

"Our expertise in complete vehicle engineering and production makes us unique and the ideal partner for the industry," added Gunther Apfalter, president of Magna Europe and Magna Steyr.

"We are very pleased that we can further strengthen our relationship with the BMW Group and continue to solidify our overall position in the industry with new business like this."

Magna has contract built BMW Group cars since 2001. In 2003 the first BMW X3 manufactured by Magna rolled off the production line, followed by a series of other models, including the first generation Mini Paceman and Countryman models. Since 2017, some BMW 5 Series has been built by Magna both with combustion engine and as hybrid powertrains.

"As a supplier with collective expertise across multiple product areas and the ability to build complete vehicles, the company is uniquely positioned to continue to partner with traditional automakers as well as new entrants in the new mobility landscape," Magna Steyr said.

"Magna has more than 100 years of experience in vehicle production, in excess of 3m vehicles produced to date, and a broad range of engineering and support services."