German carmaker BMW Group has started construction of a new manufacturing plant in Araquari, Brazil.
This move by the automotive giant is aimed at achieving balanced growth in several markets.
With this new plant, the group is further expanding its global production network, which will include 29 production and assembly sites in 13 countries on four continents.
The new plant, a first for the company in South America, will include a body shop, a paint shop and an assembly facility. It is expected to start operations during the fall of 2014.
The firm is also planning to invest EUR200m in the plant over the next few years to increase its production capacity up to 30,000 vehicles annually.
BMW models that will be produced at the new plant include MINI Countryman, BMW 1 Series 5-door model, BMW 3 Series Sedan, BMW X1, and BMW X3. The company will source numerous components locally for the production work.
The Araquari plant is expected to create 3,000 new jobs in the region. Currently, 60 employees have been hired for the plant.
BMW Group Americas region head Ludwig Willisch said: "With the construction of our plant in Araquari, we are strengthening our commitment to Brazil and adding a further milestone in the BMW Group's long-term growth strategy."
