The factory will enable BAIC to produce large-torque transmissions for its own brand cars, the state-owned Chinese automaker said in a statement.

The transmission plant -- located in Gothenburg -- originally was owned by GM. It was purchased by German auto parts supplier the WEIGL Group KG in April 2008.

The factory is the second acquisition BAIC has made in Europe. In December 2009, the Chinese company paid 1.4 billion yuan for technology from General Motor Co.'s Saab unit, including the rights to three vehicle platforms, two engines and two transmissions.

BAIC, which runs joint ventures with Daimler AG and Hyundai Motor Co. in the Chinese capital of Beijing, is now developing its own brand of sedans using the Saab technology. It expects to launch its first sedan model later this year.