BMW is investing $37.8m in a second-phase 80,000 sq.m expansion of its parts distribution centre at the Runbang Damei Automotive Supply Chain Industrial Park in Shenyang, China.

Once the project is complete, it will be capable of offering services related to pre-production, post-production and export of automotive parts, according to Runbang Damei Logistics, the logistics provider that owns and operates the centre for BMW.

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BMW’s Shenyang complex in China

At an official ground-breaking ceremony held on July 31, Dr Michael Nikolaides, senior vice-president for production network, supply chain management and logistics, at BMW Group, said the expanded facility will play a key role in the carmaker’s global logistics network and support its further expansion in China and cooperation with local partners.

“This location will play a key role in our global logistics network and will support us in supplying our production sites quickly, efficiently and reliably from China,” said Nikolaides.

He went on to highlight some of the milestone achievements so far at the location following the initial agreement signed with Runbang Damei Logistics in November 2018. Work began on the original logistics centre in April 2019 and it was officially opened in July 2020.

“Today, after four years of successful operations, we are already laying the foundation for another building, which will offer more than double the space of the current building on the site,” said Nikolaides.

In an interview with Automotive Logistics in June, Nikolaides talked about how BMW Group is making cross-functional decisions to make its supply chain more localised, digitalised and efficient.

As part of its localisation strategy BMW Group announced that from 2026 Neue Klasse electric vehicles will also be made by the BMW Brilliance Automotive (BBA) joint venture in Shenyang, China and high-voltage lithium batteries required for the cars will be manufactured locally. The installation of plant and machinery has been underway since March 2024, according to BMW. Preparing for the launch of the Neue Klasse, the BMW Group has also set up its largest R&D network outside Germany, with facilities in Beijing, Shanghai, Shenyang and Nanjing.

Earlier this year, Nikolaides spoke at the Automotive Logistics & Supply Chain Europe conference about how BMW Group’s central logistics team was leading a combined steering committee acrossproduction, supply chain and logistics divisions to support cross-functional decisions to be made in support of a more localised, digitalised and efficient supply chain.