“The BMW plant in Debrecen will be built; so far, everything has gone according to the original schedule, the construction site was officially handed over to the investor on Friday”, Minister of Foreign Affairs and Trade Péter Szijjártó announced at a Facebook press conference on Friday from Debrecen.

“All parties are keeping their promises and fulfilling their obligations; the contract on the plant’s construction, which was announced in the summer of 2018, will come into force without amendment at the end of June 2020”, Mr. Szijjártó emphasised. He added that the value of the investment exceeds one billion euros, towards which the Hungarian government is providing 12.3 billion forints (EUR 34.7 million) in funding.

“The global pandemic is also causing a delay of several months within the global economy, and accordingly it is only natural that the schedule of the construction work needs to be amended by a few months”, he explained. The Minister stressed that there is no question concerning whether or not the plant will be built and there is also no question concerning whether the construction work will begin or not, because the construction work has already begun. “This is clearly apparent, the future plant director and BMW’s representatives have all made this absolutely clear”, he stated.

Mr. Szijjártó recalled that the first phase of the plant’s construction, which includes preparatory work and infrastructure projects, has been ongoing since BMW announced the Debrecen investment. “Hundreds of machine chains and thousands of people have been working for months on the four hundred hectare area created for the site of the plant; the workers have moved over 2 million cubic metres of earth, laid down 123 kilometres of cables, and dug out 12 kilometres of sewers, and have positioned 500 columns to ensure the stability of the future buildings”, he listed. He also stated that work relating to the facility’s electricity and natural gas supply has also begun, and the construction work on the two motorway exits is also moving forward according to schedule: the first motorway intersection will be constructed by the end of 2021, by which time the road construction works in the vicinity of the industrial park will have been completed. “The development of the Budapest-Debrecen railway line is also in progress, and will be completed by 2023. All work relating to the opening of the German school have already been completed”, he added. The Minister also confirmed that BMW has hired its first employees in Debrecen.

Mr. Szijjártó also spoke about the fact that the global pandemic is not only a health issue, but also an economic issue. “While our number one duty is to protect human lives and health, protecting workplaces and the creation of new jobs, and thereby the rebooting of the Hungarian economy, is also an important task”, he stated. “This is only possible via new investments”, he stressed. “Accordingly, the government’s Economy Protection Action Plan is continuing the economic policy philosophy that we have been professing for the past ten years, and which centres on funding new investment projects”, he declared.

“The automotive industry is playing an outstanding role within the field of investment projects; the plant will be built and Debrecen will become one of the important bastions of the global automotive industry”, he said in summary, thanking all of BMW’s directors for being committed to Hungary and Debrecen.

At the event, Managing Director of BMW Manufacturing Hungary Limited Michele Melchiorre declared that the construction work is continuing according to schedule. “We remain committed to the plans for the establishment of the plant in Debrecen”, he said. The Managing Director added that the global economic situation that has been caused by the coronavirus pandemic has also had an adverse effect on the construction project. “The construction schedule will have to be amended slightly, and the scheduling is currently under review”, he said, noting that according to estimates the delay is expected to be a few months. In closing, Michele Melchiorre thanked the City of Debrecen and the Hungarian government for their continued faith and professional cooperation.

 

(Ministry of Foreign Affairs and Trade/MTI)