German car manufacturer BMW has selected the Hungarian city of Debrecen as the location for its new car factory, in which it will invest about EUR 1 billion.

The factory will produce about 150,000 cars per year and create over 1,000 new jobs. Debrecen is Hungary’s second-biggest city and is located only 40 kilometers West of the Romanian border.

“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,” reads a BMW press release.

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.

BMW is the second German car-maker that chooses Hungary for a new plant, after Mercedes announced plans to open a new EUR 1 bln plant near Budapest in 2016. Audi also has a factory in Hungary, at Gyor, which was expanded recently with a new production line for engines. Suzuki also has a plant in Hungary.

Meanwhile, Romania has only two car producers, Dacia (Renault) and Ford, although many international automotive companies produce components here.

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editor@romania-insider.com