Investing.com - BMW Group announced on Thursday that it will increase its stake from 50% to 75% in BMW Brilliance Automotive (BBA), its joint venture with Brilliance China Automotive Holdings Ltd (HK:1114).
At the same time, the two companies will extend their collaboration contract for 22 years until 2040.
Brilliance halted trading of its shares in the Hong Kong Stock Exchange on Thursday morning pending an announcement.
BBA also announced an investment of more than EUR3 billion (US$3.47 billion) in its plants in the city of Shenyang. A new plant in Tiexi District is expected to double in capacity while an existing plant in Dadong District will go through extensive remodeling and expansion.
The targeted annual production capacity of BMW automobiles at BBA plants is expected to reach 650,000 units from the early 2020s, providing 5,000 new jobs.