BMW Brilliance said on Thursday that it has signed an agreement with Shenyang, Liaoning province, to build a new engine plant there.

BMW Brilliance, the joint venture of German luxury-car maker BMW and China's Brilliance Auto, said it expects that the new plant will help double its annual engine output from the current 200,000 units to 400,000 when the plant begins production in 2015. All of the engines will be used in locally produced automobiles.

Construction of the plant is set to begin in 2013.

BMW Brilliance also said that it will use its own working capital to establish the new engine plant, but declined to disclose investment figures.

In the first half, BMW Brilliance reported a total sales of 65,480 units in China, representing a year-on-year growth of 45.4 percent.