German carmaker Daimler-Benz will invest 800 million euros (1.24 billion U.S. dollars) in building a plant in southern Hungary, Hungarian news agency MTI reported Wednesday.
The new plant, to be built in the city of Kecskemet, 80 km southeast of Budapest, will be the country's biggest initial greenfield investment, Hungarian Prime Minister Ferenc Gyurcsany told a news conference.
The plant will create 2,500 jobs directly and add an extra 10,000 Hungarians to the workforce via local parts supply, he added.
The plant will be Daimler-Benz's first in eastern Europe. It is expected to be operational in 2011 with an annual capacity of 100,000 units.
The new plant will support the expansion of Daimler-Benz's Mercedes-Benz compact car lineup to four models from two.
A memorandum of understanding on the factory is expected to be signed in the coming weeks.
Source:Xinhua
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