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German carmaker BMW to build new plant in Hungary

Source: Xinhua| 2018-07-31 20:48:26|Editor: Yurou
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BUDAPEST, July 31 (Xinhua) -- German carmaker giant BMW Group is to build a new manufacturing plant in Debrecen, Eastern Hungary, Minister of Foreign Affairs and Trade Peter Szijjarto declared here on Tuesday.

"The German automaker will invest in the new plant for more than a billion euros, and will create more than a thousand new jobs," Szijjarto announced.

He added that this investment would contribute to the Hungarian economy's competitiveness and would further strengthen economic ties between Hungary and Germany.

He said talks had been going on with BMW for 14 months and the company's choice was a "huge success for Hungary" as several other locations, some not even in Europe, had been considered.

"The plant, with a capacity of 150,000 units per year, would be equipped to produce traditional as well as electric vehicles," the minister pointed.

"The BMW Group's decision to build this new plant reaffirms our perspective for global growth. After significant investments in China, Mexico and the USA, we are now strengthening our activities in Europe to maintain a worldwide balance of production between Asia, America and our home continent," said Harald Kruger, Chairman of the BMW AG Board of Management, in a statement.

Europe is the most important market for the BMW Group. In 2017, it accounted for almost 45 percent of all vehicle sales, with 1.1 million units sold.

Debrecen is the ideal place for the BMW Group to expand its production network. It was chosen primarily for its very good infrastructure, suitable logistics connections and proximity to the established supplier network. The qualified personnel in the local area were another key advantage, according to the German carmaker.

The BMW Group has been operating a representative office in Hungary since 2004 and enjoys long-standing, positive relations with suppliers in the country. Last year, materials and services worth 1.4 billion euros were purchased in Hungary.

The plant in Debrecen will set new standards in digitalization, sustainability and flexibility. In addition, it will be a technology leader, with innovative solutions for automation, state-of-the-art assistance systems and flexible logistics applications.

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