BMW Announces Plant Expansion in South Carolina

SPARTANBURG, S.C.--South Carolina Gov. Mark Sanford and the South Carolina Department of Commerce today joined BMW in announcing it will invest an additional $750 million in its Upstate South Carolina factory to add 1.5 million square feet and 500 new jobs on site to produce three models and to increase production capacity to 240,000 units by 2012.

The investment is the largest ever announced for the Spartanburg County factory, increasing investments of the BMW Group in its South Carolina operations to $4.2 billion.

The three-year construction project includes a new 1.2 million square foot Assembly Facility north of the existing factory to accommodate the next generation BMW X3 Sports Activity Vehicle. In addition, the Paint Shop will expand by about 80 percent or 300,000 square feet. The existing Body Shops will be renovated.

The additional investment will prepare the factory to increase production from 160,000 units to 240,000 units. The expansion of the Spartanburg plant also means a bigger purchase and export volume in and from the NAFTA region, which will contribute considerably to the company’s natural hedging position.

After the expansion, the Spartanburg plant will manufacture the BMW X3, X5 Sports Activity Vehicle and X6 Sports Activity Coupe and their respective variants for world markets. “Centralizing our know-how for BMW X models in Spartanburg will enable us to work more efficiently, thus supporting our long-range corporate strategy. In addition, it was a logical step for the BMW Group as a global player to increase production capacity in its largest market,” said BMW Board Member Frank-Peter Arndt.

A highlight will be the production of a diesel X5 Sports Activity Vehicle for the United States market starting later this year.

“The boost in the production capacity at BMW Manufacturing will positively impact the logistics, supplier and distribution networks that support the manufacturing processes,” said Josef Kerscher, President of BMW Manufacturing. While the supplier network may grow, existing supplier companies will ramp up operations to provide automotive parts for the higher production levels, doubling parts container traffic and significantly increasing exports through the Port of Charleston.

"Today's announcement is another positive sign that our efforts to improve the state's business climate are paying incredible dividends. BMW's announcement to expand its operations in South Carolina is far more than an expansion. This investment brings with it an entire second production facility that will significantly impact the growth of our state's automotive industry not just in terms of the jobs directly tied to the investment, but also indirectly from the new jobs and investments expected to be generated by BMW suppliers. The company is one with a long history in our state, but its decision to expand here reiterates BMW's confidence in South Carolina's workforce, existing OEM suppliers, and ability to meet the demands of a growing international corporation," said Gov. Mark Sanford.

“BMW’s expansion in South Carolina will have a tremendous impact on the region and the entire state. We expect to see new suppliers come to the state and existing suppliers grow as a result of this announcement and that means new jobs and lots of new supplier jobs all over South Carolina. BMW is truly the nucleus of a job creating machine,” said South Carolina Secretary of Commerce Joe Taylor. “Thanks to Josef Kerscher, Frank-Peter Arndt, and the entire team at BMW for their continued commitment to South Carolina. We look forward to a long and prosperous relationship for many more years to come.”

Today BMW has invested $3.5 billion in its South Carolina operations with more than 5,400 people working on the site. Fifty-two suppliers are located in the Palmetto State, and 40 of those 52 suppliers have chosen to place new North American operations in the state to partner with BMW. And BMW’s North American supplier network has grown from 22 in 1992 to 194 companies today.

To meet growing customer demand, vehicle production at BMW Manufacturing has grown from 429 units in 1994, which was the first year of production to 157,530 units in 2007. In the same period the sales volume in the United States increased from 65,000 to 335,000 units in 2007.