Mubasher: BMW AG on Thursday has announced plans to raise its stake in a Chinese joint venture (JV) to 75%, from 50% through paying EUR 3.6 billion ($4.1 billion).

The German automaker’s transaction will be completed after obtaining approvals from authorities and the nod of Brilliance China's shareholders, according to a statement.

Under this agreement, BMW will also raise producing cars in the JV’s plants located in Shenyang.

More than EUR 3 billion are expected to be injected in the existing and new factories in Shenyang over the coming years, the statement added.

"With continuous investment, as well as the development and production of electric vehicles, we underline China's importance as a dynamic growth market for us," BMW’s chairman Harald Krueger said.

The annual production of cars in the JV’s facilities will grow to 650,000 at the beginning of 2020, along with creating 5,000 job opportunities.

On a related note, the German major automaker and the Chinese partner, Brilliance China Automotive Holdings Ltd, approved to extend BMW Brilliance Automotive Ltd. JV’s contract to 2040 from its existing expiration date in 2028.