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Daimler breaks ground for second plant in Hungary

German carmaker Daimler laid the cornerstone of a EUR 1 billion plant at its base in Kecskemét (92 km southeast of Budapest) on Tuesday. Production at the factory is expected to start in 2020.

The new plant, Daimlerʼs second in Hungary, will create 2,500 jobs. It is being built on an area of 382,000 square meters and will have a press shop, a body-in-white shop, a paint shop and an assembly line, national news agency MTI reported.

The facility will be a "Full-Flex Plant," one in which "several vehicle architectures from compact models to rear-wheel drive sedans and various drive forms, including electric vehicles, can be flexibly produced on one line," said Markus Schafer, member of the divisional board of Mercedes-Benz Cars, Manufacturing and Supply Chain.

In addition to Schafer, Minister of Foreign Affairs and Trade Péter Szijjártó, Kecskemét Mayor Claudia Pataki Szemerey, and Christian Wolff, CEO of Mercedes-Benz Manufacturing Hungary, participated at the groundbreaking ceremony.

Szijjártó said the Hungarian government is supporting the investment with a EUR 37.5 million grant, adding that the ratio of Hungarian supplier contributions to the Daimler plantʼs output rose to 50% in 2017, from 30% in 2016.