UPDATE 3-BMW to reveal Mexico factory plans this week -official
* BMW to make announcement in Mexico on July 3
* BMW declines to comment on nature of announcement
* BMW looking for locations for new factory (Releads with confirmation of announcement)
MEXICO CITY/MUNICH, June 30 (Reuters) - Germany's BMW AG will unveil this week plans to build a new factory in Mexico, a government official said, as the company seeks to meet growing demand for premium cars.
News of the factory comes just days after BMW's German rival, Daimler, announced similar plans, and adds to a growing list of companies plowing money into car making in Mexico.
Speaking on condition of anonymity, the Mexican official said the plant would likely amount to an investment of at least 1 billion euros ($1.36 billion) and would be located either in Hidalgo state north of Mexico City or San Luis Potosi in central Mexico.
A spokesman for Munich-based BMW said earlier on Monday that "a decision will be made public" on July 3.
BMW declined to comment further.
A new factory in Mexico would come on top of BMW's plans to invest $1 billion to expand capacity by 50 percent at its plant in Spartanburg, South Carolina. Continuación...