Brilliance China reinforces shareholding in BMW JV
Brilliance China Automotive Holdings Ltd, the Chinese partner of BMW, said on Wednesday that the company will buy the remaining 1% stake it does not own in each of its subsidiaries, Shenyang Brilliance XinJinBei Automobile Co Ltd and Shenyang JinBei Automotive Industry Holdings, for a total of RMB 30 million.
After the acquisitions, Brilliance's stake in BMW Brilliance Automotive Ltd, which is partly owned by SJAI, will be increased to 50%, the company said in a statement.
Brilliance said the acquisitions will simplify its group shareholding structure, streamline the group's administration and allow it to benefit from the profitable business of BMW Brilliance, said the statement.
Brilliance China, the nation's eighth-largest auto maker, is based Shenyang, the capital of Liaoning Province. It is engaged in the manufacture and sale of minibuses and automotive components. Through its joint controlled entity, BMW Brilliance, the company is also engaged in the manufacture and sale of BMW sedans.
In December, BMW and Brilliance China started the construction of a new plant at its Shenyang home base. The annual production capacity is expected to reach 100,000 units in four years, and 300,000 units in the long term, China Knowledge reported earlier.
In 2009, BMW sold a record 90,536 BMW-brand and Mini-brand cars in mainland China last year, 38% more than the 65,822 it sold in 2008.
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