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by Matt Brogan

BMW has announced overnight that it plans to open another assembly plant in Shenyang, China, the second under its joint-venture with local manufacturer Brilliance.

Once complete the plant will more than double BMW’s Chinese assembly capacity, which is currently sits at around 41,000 units per annum.

“Our plant has reached its capacity limit, so we are now taking the next step,” said BMW Chief Financial Officer, Mr Friedrich Eichiner in a statement. “The decision to build a second plant demonstrates that we are investing in our future in China and that we intend to participate in the strong growth in the Chinese market.”

BMW hopes the capacity will allow it to further expand in to the lucrative Chinese market by producing more vehicles domestically. BMW’s sales are up 37 per cent in China so far this year, selling 71,952 cars until the end of October.

Construction of the new plant will begin next year with the first car due to roll off the assembly line in early 2012. The plant will create jobs for more than 1,000 people.

BMW currently produces its 3 and 5 Series models in China. It remains unclear as to whether the new plant will see this range expanded or simply allow greater volume of existing models.