BMW has announced it will build a new production facility in Debrecen, Hungary, as part of its continued expansion of its European network.
The facility will require an investment of approximately €1bn (US$12.8bn), will offer capacity of 150,000 units per year, and will create more than 1,000 jobs. The new plant will also be capable of producing both electrified and combustion-engine vehicles on the same production line.
“The BMW Group’s decision to build this new plant reaffirms our perspective for global growth,” said Harald Krüger, chairman of the BMW board of management.
“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.
“Europe is the BMW Group’s largest production location. In 2018 alone we are investing more than €1bn (US$1.2bn) in our German sites to upgrade and prepare them for electric mobility.”
“In the future, every BMW Group plant in Europe will be equipped to produce electrified as well as conventional vehicles,” added Oliver Zipse, BMW board member for production.
“Our new plant in Hungary will also be able to manufacture both combustion and electrified BMW models – all on a single production line. It will bring greater capacity to our worldwide production network. When production commences, the plant will set new standards in flexibility, digitization and productivity.”
Debrecen was chosen primarily for its good infrastructure, suitable logistics connections, and proximity to the established supplier network. The qualified personnel in the local area were another key advantage. Besides the team at the plant itself, numerous jobs will be created with suppliers and service providers, both within the grounds of the new facility and across the local region.
The BMW Group has been operating a representative office in Hungary since 2004 and enjoys long-standing relations with suppliers in the country.