BMW announces major upgrade to Hams Hall engine plant

BMW has announced it is to carry out a major upgrade to its Hams Hall engine plant in Warwickshire to support the manufacture of new low-emission petrol and diesel engines.

This morning’s announcement comes of top of the group’s £500m investment in its Mini production facilities at Oxford and record third quarter sales.

The firm said the move represented a “strong commitment” to the UK and its decision has been welcomed by the Government.

The new flexible assembly facilities will support the company’s expansion, which includes new model development such as the new 3-Series and Mini Coupe.

Frank-Peter Arndt, BMW AG board member for production, said: “We will install a highly flexible production system that will ensure the Hams Hall site remains as a state-of-the art facility, reinforcing the long-term future of the plant and securing the jobs at Hams Hall.

“The new manufacturing facilities will allow the assembly of diesel, as well as petrol engines, for the first time in the plant’s 10-year history. We have already confirmed that the precision machining of key engine components for these new engines will also take place at the Hams Hall plant.”

Business Minister Mark Prisk said: “The introduction of new state-of-the-art production facilities is great news for Hams Hall and its workforce. I visited Hams Hall last month and was impressed by the skill and passion of the plant’s workers as well as the efficiency of their operation.

“This investment in addition to the £500m already announced by BMW in June is a resounding vote of confidence not just for Hams Hall but for the whole UK automotive sector.”

Nick Spencer, newly-appointed Hams Hall plant director, said: “This is excellent news for the plant and everyone who works here.

“Over recent months we have further improved the competitiveness and flexibility of the plant and helped to lay the foundation for the company’s decision. The announcement today recognises the dedication, commitment and flexibility of our workforce, and underlines our important contribution to the BMW Group’s production network.”

Since opening in 2001, the Hams Hall plant has regularly reported record production levels, with the forward order situation indicating the plant is on track for yet another record year in 2011. The plant was the first BMW engine production facility to be built outside Germany and Austria.

Currently, four-cylinder petrol engines and machined engine components are produced at Hams Hall for delivery to BMW Group vehicle plants across the world; Germany, Austria, South Africa and China, as well as to the Mini plant at Oxford. The power units are manufactured for both the BMW and Mini brands.