The first contracts regarding the investments of the BMW Group in Hungary have been completed in a historic signing. The new BMW factory will be situated at the Northwest side of Debrecen, the preparatory activities for construction work will start in early 2019.

BMW Group continues to expand its manufacturing network in Europe: on the 12th of October, 2018, Mr. Péter Szíjjártó, Hungarian Minister for Foreign Affairs and International Trade, Mr. László Papp, mayor of Debrecen, and Mr. Oliver Zipse,member of BMW AG’s Board of Directors responsible for manufacturing, signed the first contracts concerning the company’s investments in Hungary, including a land purchase contract for the northwestern part of Debrecen. The event took place at the University of Debrecen. Debrecen is going to provide a home for the new European manufacturing plant of the Company group, headquartered in Munich. The construction works are planned to start at the end of 2019.

“We consider Debrecen as an extremely competitive region, which is committed authority cooperation, good infrastructure with a well-founded supplier base and suitable agricultural lands making it possible to operate a complete vehicle manufacturing facility.“– stated Oliver Zipse at the ceremony followed by the signing of contracts.„Wonderful conditions for building an innovative car factory which works with advanced technology. The BMW Group’s plant in Debrecen will be a perfect imprint of all the automotive skills we have. ” – he added.

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At Friday’s event, Oliver Zipse announced that the new facility would be overseen by Director Michele Melchiorre, who comes with an extensive experience gained in the automotive and aircraft industry.

Mr.Péter Szíjjártó, Hungarian Minister for Foreign Affairs and International Trade, emphasized in his speech: „There are rapid and profound changes in the world economy that can be used to talk about modern industrial revolution,where new technologies constantly change the criteria for success. In this new era, companies are competing for the application of new technologies and the countries for investments. Therefore, the BMW’s investment decision in Debrecen can be considered as a historical success, by which the German automotive industry can be intertwined with the Hungarian expertise. This investment  not only contributes to enhancing the competitiveness of Hungary, but is also evidence of the effectiveness of the Hungarian economic policy.”

A historical moment in Debrecen

Mr László Papp, Mayor of Debrecen, during the ceremonial signing, said: “BMW is making a historic investment for the future of the city and the region.Economically speaking, the new plant will be a dynamo for the development ofDebrecen and the region. Debrecen is moving toward a new development path.After signing the contract, our task is to make the city suitable to fulfill its historical role in all aspects. By the 2030’s, Debrecen will be a new and growing European mid-city with strong citizenship and will become Hungary’s new business and economic centre. “

High-tech automotive production in the new plant

Following its launch, the BMW Group Plant in Debrecen goal is to produce 150,000 new cars per year. The plant will create over 1,000 new jobs directly, and through the supply-and service network it offers many additional jobs indirectly – both in the new facility area and the entire northeastern-Hungarian region.

The new factory which will be built on the outskirts of Debrecen, and it sets up new vehicle factory standards in digitization, sustainability and flexibility. Moreover, it will become a technological guide immediately with its innovative solutions, high-tech auxiliary equipment and flexible logistics network which are all applied in the field of automotive vehicle manufacturing. BMW Group’s mass-production system is extremely flexible; the new plant will be equipped to manufacture electrified models as well as conventional vehicles,  all on a single production line.