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2008 March 11   12:27

BMW expansion to boost Port of Charleston

The State Ports Authority received a major boost Monday when German automobile maker BMW said it will "significantly" increase shipments of parts and vehicles through the Port of Charleston.
As part of a $750 million investment, the company said it will create 500 jobs and add 1.5 million square feet of space at its plant in Greer, between Greenville and Spartanburg. It will allow BMW to increase production capacity from 160,000 vehicles a year to 240,000 vehicles a year by 2012.
BMWs at Union Pier. The expansion of the company's Upstate plant will mean a dramatic increase in BMW-related shipping traffic in Charleston.
BMWs at Union Pier. The expansion of the company's Upstate plant will mean a dramatic increase in BMW-related shipping traffic in Charleston.
SPA officials said they expect the volume of finished BMWs exported through Charleston to swell by about 50 percent to about 150,000 vehicles year. More than half the autos that BMW builds in South Carolina head to overseas markets. Also, the number of imported containers ferrying automotive parts destined for the carmaker's suppliers will likely double, officials said.
Byron Miller, SPA spokesman, said Charleston handles thousands of BMW-related containers every year. And more than 1.4 million finished vehicles, including imports and exports, have passed through Charleston's Union Pier terminal since BMW started production in South Carolina 14 years ago.
Miller described Monday's announcement as "certainly good news for the port."
"The ports authority remains in close communication with BMW regarding the impact of their business decisions on the port and the people who work here," he said.
By the Numbers
$3.5 billion -- BMW investment in S.C. operations through '07
$750 million -- Planned investment in new expansion
2.5 million -- BMW factory's current size, in square feet
1.5 million -- Size of planned expansion, in square feet
429 -- Vehicles BMW made in S.C. in 1994
157,530 -- Vehicles BMW made here last year
5,400 -- BMW's current employment in S.C.
$450 million -- BMW's annual payroll in S.C.
BMW opened its $400 million manufacturing plant off Interstate 85 in 1994. The first American-made BMW, a 318i, rolled off the production line Sept. 8 of that year.
The plant has been expanded since then to more than 3 million square feet as the company has increased production, and it now employs about 5,400 workers. More than 18,000 people across the state, including suppliers and others, play a role in making a BMW.
The latest move signals a vote of confidence in the state's work force, said Gov. Mark Sanford, who was at the Greer plant Monday.
"BMW's announcement to expand its operations in South Carolina is far more than an expansion. This investment brings with it an entire second production facility," Sanford said in a statement.
The three-year project includes the construction of a new assembly facility north of the existing factory to accommodate the next- generation BMW X3 Sports Activity Vehicle.
Also, the paint shop will be expanded by about 300,000 square feet and the existing body shops will be renovated, the company said.
After the expansion, the Spartanburg County plant will make the X3, the X5 Sports Activity Vehicle and the X6 Sports Activity Coupe.
The possibility of BMW increasing production at its South Carolina plant was first disclosed in May, when a senior executive of BMW AG in Munich, Germany, parent of BMW Manufacturing, said the company was suffering the effects of foreign exchange rates.
The automaker said at the time that the decision to raise production is part of an attempt to shield itself from a weaker dollar and meet potential market growth in the United States, its biggest single market. In 2006, BMW said, foreign exchange rates hurt its earnings by the equivalent of about $902 million.

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