BMW set to invest more in Shenyang

0 Comment(s)Print E-mail China Daily, April 29, 2024
Adjust font size:

German automaker BMW Group's latest plan to invest an additional 20 billion yuan ($2.76 billion) in its production base in Shenyang, the capital of Liaoning province, will boost its earnings potential and benefit upstream and downstream businesses in China, a renowned scholar said on Sunday.

The company made the investment announcement on Friday.

Liaoning's solid industrial foundation, high-quality industrial workforce and relatively low labor costs will continue to attract multinational corporations such as BMW to invest in the province, said Yu Miaojie, president of Shenyang-based Liaoning University.

"More important, capital-intensive industries such as automotive manufacturing place significant emphasis on upstream and downstream industrial support and a robust industrial base," Yu said.

Liaoning's well-developed industrial system will create favorable conditions for BMW to benefit from China's rapidly growing automotive market, he added.

Oliver Zipse, chairman of BMW's board of management, said, "The new investment underlines not only our confidence in China's long-term economic prospects, but also in the innovation capabilities of our Chinese partners."

According to BMW, this step will support upgrades and expansions that will make the company's Shenyang manufacturing hub ready for the production of Neue Klasse vehicle models — a completely new generation that combines innovations in the areas of electrification, digitalization and the circular economy.

The first Neue Klasse models are scheduled to roll off BMW's production line in Shenyang in 2026.

"The BMW Group has always been in China for the long run," Zipse said, adding that the recent announcement proved it again.

China is now home to BMW's largest research and development network outside Germany, and around one-fifth of its global workforce is based in the country.

The company's production base in Shenyang is also one of its largest and most advanced, and includes the development of 138 local suppliers, according to the Munich-based group.

Following China's announcement that it has lifted all restrictions on foreign investment in the manufacturing sector and implemented measures to ensure equal treatment for foreign-funded companies, actual foreign direct investment in China totaled 301.67 billion yuan in the first quarter, remaining at a high level, according to the Ministry of Commerce.

Zhao Ping, spokeswoman for the Beijing-based China Council for the Promotion of International Trade, said that China's appealing investment environment and dedication to high-level opening-up have strengthened global companies' confidence about investing in the country.

Follow on Twitter and Facebook to join the conversation.
ChinaNews App Download
Print E-mail Bookmark and Share

Go to Forum >>0 Comment(s)

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Enter the words you see:   
    Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from