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MG to Build First EU Factory in Ferrol, Spain

The €200 million project targets production in 2028 to sidestep steep EU import and anti‑subsidy duties.

Overview

  • SAIC-owned MG confirmed on 3 June that it will locate a new manufacturing and R&D hub between Ferrol port and As Pontes in Galicia as part of its “In Europe, For Europe” strategy.
  • The initial investment is about €200 million with construction planned for 2027 and the plant aiming to begin vehicle production by the end of 2028.
  • The factory is being built in two phases with a planned eventual capacity of up to 120,000 vehicles per year and an expected 2,000 to 2,300 jobs created in the region.
  • The decision is driven by EU trade measures that add large anti‑subsidy levies and tariffs on Chinese‑built EVs, a cost that local production inside the EU would eliminate.
  • Spain’s port access, existing auto supply chain and state support programs have made Galicia a preferred hub for Chinese automakers and raise fresh competitive pressure on incumbent European producers.