Johannesburg - BMW South Africa announced it would invest an additional R2.2 billion at a plant in Rosslyn, outside Pretoria.
This would trigger the introduction of the newest BMW vehicle and production technology at the plant and within its local supplier network.
"The investment will enable maximum plant capacity to increase from 60 000 to 87 000 units, while securing production in South Africa for the future," the German car manufacturer said on Monday.
The investment announcement followed the signing of a Letter of Commitment with the Department of Trade and Industry, which will honour the investment under the new support scheme for the motor industry, the Automotive Production and Development Programme (APDP)
The APDP will replace the current support programme for the automotive industry, the Motor Industry Development Programme (MIDP), in 2012.
At the same time, the automaker announced a training program for 1 100 associates at its Rosslyn plant.
"The training program commenced in early September and will run for the next 18 months, providing a MERSETA [Manufacturing, Engineering and Related Services Sector Education Training Authority] accredited qualification to the associates."
Gauteng Premier Nomvula Mokonyane welcomed the decision, saying it was a major boost for the South African economy.
She said the automotive sector remained a key industry in South Africa and this investment proved Gauteng was a first choice production location.
Mokonyane, speaking to Radio 702, said the investment showed confidence by the group in the future of South Africa's economy and would not only guarantee jobs but also develop skills in the province.