BMW Photo: VCG

BMW China is reportedly set to purchase  Zhonghua Sedan, from BMW's affiliate partner in China, Huachen Group in a deal worth 1.633 billion yuan ($252.78 million) on Tuesday. The move comes amid restructuring within Huachen.

Established in 2000, Zhonghua Sedan is viewed as a  high-end domestic brand. 

BMW China said in response to media inquiries that it hopes to back the restructuring of Huachen group and further expand its business in Northeast China's Liaoning Province. 

"We hope to use Huachen's existing facility to produce cars. However, the project is still under review by regulatory departments with no further details to be disclosed," a representative from BMW China said.

Huachen Group is facing significant pressure from mounting debts. As of Tuesday the estimated total amount of debts of Huachen group and its afflicted enterprises has mounted to 61.984 billion yuan, the group said at a meeting on Tuesday. 

Huachen Group is a key state-owned enterprise and a main force within China's automobile industry. It has six vehicle production enterprises, two engine production enterprises and several parts production enterprises in Liaoning Province, Southwest China's Sichuan Province and Chongqing Municipality, with 47,000 employees and total assets worth more than 190 billion yuan.