BMW spending $750M to expand operations in S.C.

March 20, 2008
Automaker constructing new 1.2 Million-sq ft plant to manufacture next generation sports activity vehicle

German auto manufacturer BMW will invest $750 million to nearly double its plant operations in Spartanburg, S.C. The facility will gain an additional 1.5 million square feet and 500 new jobs. At the same time BMW said it would cut 7.5 percent of its German workforce in 2008.

The German automaker will manufacture the BMW X3, X5 Sports Activity Vehicle and X6 Sports Activity Coupe and other model variants in a new 1.2 million-square-foot assembly plant north of the current facility in Greer. The three-year development plan also includes a 300,000-square-foot expansion to the paint shop and renovation of the current body shops.

The new factory will boost production by 33 percent to 240,000 units by 2012. BMW said the expansion will increase its purchase and export volume in and from the NAFTA region.

“The boost in the production capacity at BMW Manufacturing will positively impact the logistics, supplier and distribution networks that support the manufacturing processes,” Josef Kerscher, president of BMW Manufacturing said.

BMW said existing supplier companies will increase operations to provide parts for the higher production levels, doubling parts container traffic and significantly increasing exports through the Port of Charleston