German carmaker Daimler on Thursday inaugurated a €800 million plant in the Hungarian city of Kecskemét.

The plant will employ about 3,000 people to turn out the next-generation compact models, said Daimler CEO Dieter Zetsche.

Earlier, the plant was expected to employ about 2,500 people, but Zetsche said the number was raised because of big demand for the company’s new compact models. He added that more than 100,000 orders had already arrived for the new B-Class.

The new plant will make two of four next-generation A- and B-Class models. It will turn out an annual 100,000-120,000 of the vehicles.

The cornerstone of the plant was laid in the autumn of 2009. Hungarian companies won more than 80% of the contracts for the construction.