German automaker BMW Group is set to invest $1bn to expand the production capacity at its Spartanburg plant in South Carolina by 2016.
The plant currently producies BMW X3, X5, X5 M, X6 and X6 M models. The new expansion will see the production of BMW X7 at this plant.
The luxury carmaker has also commenced the production of its X4 model on 28 March 2014.
BMW board of management chairman Norbert Reithofer said that to meet strong global demand for the BMW X models, the company will invest a total of $1bn in our Spartanburg plant by 2016.
"This will increase annual production capacity by 50% up to 450,000 vehicles from 300,000 currently," Reithofer added.
"With the BMW X7, we are developing another, larger X model, which we will produce at our US plant for our world markets - once again underscoring our commitment to the U.S."
This expansion is expected to increase the workforce at the Spartanburg plant to 8.800 by adding 800 new jobs.
Commenced production in 1994, the Spartanburg plant produces approximately 70% of vehicles for BMW's export markets globally.