Officials say German automaker BMW AG will build a factory in southern Brazil.

Santa Catarina state Gov. Raimundo Colombo says BMW will invest approximately 1 billion reals ($500 million) to build the plant.

Colombo tells the state government's website he will meet with President Dilma Rousseff on Monday "to explain details of the investment."

The web site says BMW will produce medium-sized sedans, the first of which will off the assembly line in about two years.