German automobile manufacturer BMW Group will establish a €1bn facility near the town of Debrecen in Hungary as part of the company’s expansion of production network in Europe.
The new plant will offer capacity of up to 150,000 BMW models a year and create more than 1,000 new jobs.
BMW board of management chairman Harald Krüger said: “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.
“Europe is the BMW Group’s largest production location. In 2018 alone we are investing more than €1bn in our German sites to upgrade and prepare them for electric mobility.”
The decision to expand the production network follows the group’s strategic principle of balanced global growth and is the next step in the implementation of BMW Group Strategy NUMBER ONE > NEXT.
The BMW Group chose Debrecen to expand its production network due to its infrastructure, logistics connections, proximity to supplier network and the availability of qualified personnel.
The Debrecen plant will incorporate innovative solutions for automation, modern assistance systems and flexible logistics applications.
It will manufacture conventionally as well as electrically powered vehicles on a single production line, in keeping with the BMW Group’s principle of the highly flexible production system.
BMW board member for production Oliver Zipse said: “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.”
Image: BMW Group plant in Munich. Photo: courtesy of BMW Group.