New BMW plant symbolizes the successful economic policy of the past 12 years

Long-term economic growth will be brought to Debrecen by BMW's new plant; this was made clear at the ground-breaking ceremony in Debrecen. 

Photo credit: Facebook (Papp László)

The new construction, a HUF 400 billion investment, will create more than 1,000 new jobs in the city, Minister of Foreign Affairs and Trade Péter Szijjártó said at the event. 

The plant will produce 150,000 vehicles a year and will start production of a brand new electric model in 2025, he added.

He called the start of construction a milestone for the automotive industry, which is the backbone of the Hungarian economy. BMW used to operate as a kind of “invisible car company” in Hungary, buying parts from 54 Hungarian companies along its supply chain, employing almost 10,000 people.

According to the minister, in 2018 it became clear that there will be a visible factory, which will be a real milestone not only for Debrecen and Eastern Hungary, but for the entire Hungarian automotive industry. 

Hungary offers one of the most attractive investment environments for companies in continental Europe, he said, adding that it has one of the most skilled workforces and exceptional political stability. Hungary is the only country in Europe, apart from Germany, where all three major German premium car companies will have factories. He pointed out that Hungary is also a world leader in the transition to electric cars and that the construction of the BMW plant will further strengthen the country’s position.

Milan Nedeljkovic, a member of the BMW AG management board and responsible for production, said that the success of BMW Group is based on long-term thinking. The Debrecen plant gives them a perspective for global growth, strengthens their European production coverage and allows them to rely on a strong European network.

The rate of development in Hungary is amazing, Debrecen is the perfect location for a modern and innovative company. It will play a key role in the transition to electric cars. Debrecen will make history, it will be the first factory where we have completely rethought production and we are bringing the latest technology, Milan Nedeljkovic explained.

According to him, the new plant will be their first carbon-free plant, a new standard for the automotive industry. The Debrecen plant will also clearly set a new benchmark in productivity. He stressed that 150,000 cars will be produced every year, and the new plant will provide more than 1,000 future-oriented jobs, with many Hungarians expected to join the company, from apprentices to managers.

Hans-Peter Kemser, managing director of the BMW Group Plant Debrecen, said that this is a very important day, a milestone for Debrecen and BMW. He recalled that this is the first factory where they are building the infrastructure themselves, constructing the buildings and then moving into the central building. They are starting to recruit their colleagues, who will be trained at their headquarters, he said. 

According to the director, the current team of around 100 people will grow to more than 1,000 in the next two years, and that recruitment is already accelerating. He added that construction work on the training center at the factory is already underway. The facility, which will be ready by September 2023, will offer local vocational training through dual training.

The director stressed that they are following a very carefully planned scenario so that they can produce the first cars in the next two years. The BMW plant in Debrecen will be a milestone, both in terms of digitalization and efficiency. “With the knowledge of the BMW network, the knowledge of the region and the right people, we will be successful. It is an excellent place to build a new factory to build the future of BMW,” he pointed out. 

Mayor of Debrecen László Papp said the new plant would redefine car manufacturing. “With the arrival of BMW, we are redefining Debrecen and the eastern region of Hungary.” He said that the new production processes, the new technology and the revolutionary new vehicle concept would enhance the value of the Debrecen plant and, with it, Debrecen.

The mayor recalled that the Debrecen-BMW Group cooperation started on October 12, 2018. Despite the difficulties, 400 hectares of land were acquired in six months, and additional land for industrial infrastructure and suppliers was secured. BMW took possession of the properly prepared site in May 2020.

By laying down the foundation stone, everything is in place to complete the factory. The entire development area is available, road and rail connections are being established and the development of the supplier park has begun. The new plant will redefine the car industry, we are redefining Debrecen, and the city is experiencing a dynamism and development never seen before, the mayor said.

“In the last seven years, we have increased the size of Debrecen’s industrial sites tenfold, creating one of the most industrialized areas in Europe and thousands of jobs. It is understandable that the ambitions of Debrecen and BMW are in line with each other,” László Papp concluded. 

Source: MTI and debrecen.hu