BMW announced this week that it will start construction of a 1 billion euro plant in Debrecen. The project will kick off in Spring 2020 and will bring a significant investment to the Hungarian economy. The local council of Debrecen is finishing up groundwork at the site of the plant, BMW said. BMW Group has previously taken over ownership of the land.

To upgrade the transport infrastructure around the site, Hungary has allocated around EUR 388.4 million with additional investments allocated for improvements to the local school system.

BMW and Hungary first announced the new plant in 2018, but was put on hold for a while. The Debrecen plant will be the first European factory since 2005.

The plant in the city of Debrecen, about 230 kilometers east of Budapest, will have a production capacity of 150,000 cars and both combustion and electrified BMW models can be assembled on a single production line.

BMW now joins Daimler (Mercedes-Benz brand), Audi, Suzuki and Opel which already have car plants in the country. Audi recently announced investments to launch serial production of electric engines in Hungary.

Car manufacturing accounts for around one-third of Hungary’s exports, and with BMW this could rise to around 40 percent.

[Source: TheMayor]