Malaysian Contractor to Assemble BMW Engines

Malaysia’s Sime Darby Motors has opened a 91,500-sq-ft manufacturing facility in partnership with BMW AG to assemble engines for the German carmaker’s operations in southeast Asia.

The partners are investing a combined 132 million ringgit ($33 million) in the plant, which will have the capacity to produce 10,000 engines per year. BMW will ship components to the plant from Germany.

The new facility will assemble 3- and 4-cylinder gasoline engines and 4-cylinder diesels. The gasoline engines will be used in hybrid and conventionally powered cars.

Currently, BMW Malaysia sources the gasoline engines it uses in locally produced Bimmer and Mini models from Germany and Austria. The company doesn’t offer any diesel models in the region but is expected to add some in coming years.

In addition to Malaysia, the new plant also will provide engines to BMW and Mini models in Vietnam and the Philippines. BMW also supports the region with an engine plant in Thailand.