The BMW Group announced on July 31 that it is to build a new production facility in Hungary, close to the eastern city of Debrecen. Total investment in the new plant, which will produce 150,000 vehicles per year and employ more than 1000 people, will be approximately 1 billion euros.
“The BMW Group’s decision to build this new plant reaffirms our perspective for global growth,” said Harald Krüger, chairman of the BMW board. “After significant investments in China, Mexico and the US, we are now strengthening our activities in Europe to maintain a worldwide balance of production between Asia, America and our home continent.”
Oliver Zipse, BMW board member for production, added: “In the future, every BMW Group plant in Europe will be equipped to produce electrified as well as conventional vehicles. 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, digitalisation and productivity.”
BMW stated that Debrecen was chosen primarily for its very good infrastructure, suitable logistics connections and proximity to an established supplier network. 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, positive relations with suppliers in the country. Last year materials and services worth 1.4 billion euros were purchased in Hungary.
Europe is the most important market for the BMW Group. In 2017 it accounted for almost 45 per cent of all vehicle sales, with 1.1 million units sold.