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Ground broken for HUF 1.45 bln Daimler plant rail line

Ground was broken on Friday for a HUF 1.45 billion railway link to a big plant German carmaker Daimler is building in the Hungarian city of Kecskemét.

The start of the construction of the line is a small but important step, said Mercedes-Benz Manufacturing Hungary managing director Frank Klein said at the ceremony.

The first part of the investment involves the extension and expansion of two rail lines at the Kecskemet train station, 7km away from the plant, said László Mosóczi, deputy -CEO in charge of infrastructure at state-owned railway company MÁV. The phase will cost HUF 1 billion and will be financed by the state, he added.

In the second part of the project, Daimler will pay for a HUF 450 million track connecting the plant to the main line.

Five trains a day will serve the plant when production starts, Mosóczi said.

Klein said the construction of the €800m plant is progressing on schedule and will be completed by the deadline.

The first production car is set to roll of the line at the plant in the first quarter of 2012. The plant will make two of the four next-generation models of Daimler's A- and B-class compact cars.