The upper steam group will build the EU's first automobile factory in Spain to produce new MG-type vehicles.

According to information from IT House on 3 June, Reuters reported that local time in the Spanish Autonomous Region of Galicia, on Monday, confirmed that the Consortium would build a local car factory. This will be the first production base of the upper steam group in the EU.

It was described that the project, entitled “A Spanish Plant for Uplifting”, had been declared a strategic industrial project by the self-government and would be co-located in the ports of Ferrol and As Pontes. Alfonso Rueda, President of the Autonomous Region of Galicia, revealed that his Government had moved the strategic priorities of the project to the highest level.

The new base will focus on new energy vehicle assembly and localization of the branded MG, with an initial investment of approximately 200 million euros (IT house note: the current exchange rate is approximately RMB 1,577 million), with a planned annual capacity of 120,000.

It is planned that the project will start in 2027, with the aim of achieving production by 2028. The project also includes a logistics centre, but is still subject to approval by the central Government of Spain for OFDI.

The Government of Galicia stated in its statement that the Ferror factory would create about 1,000 direct and more indirect jobs and would make extensive use of locally produced spare parts. After the completion of phase II, the plant will have an annual capacity of 120,000 units.

Spain has one of the largest automobile manufacturing industries in Europe, and there are now a number of Chinese automobile manufacturers planning to start production in the country. The market share of Chinese motor companies in Spain has continued to rise in the context of price wars initiated by electric car manufacturers worldwide.

In addition to the gas, a joint venture between the Chire Car and the Spanish company EBRO was set up to produce cars in a former Japanese factory in Barcelona, with the aim of starting production by the end of the year or the first quarter of 2027. The joint venture had stated in 2024 that it was trying to achieve the target of 150,000 vehicles per year by 2029.

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