MG’s plan to open its first factory in Europe has taken a significant step forward. The Spanish government has approved initial permits for MG’s new plant at the port of Ferrol in Galicia, where the company aims to build 120,000 vehicles a year starting in 2028.
Factory Plans and Location Choice
The project received the necessary green light for foreign direct investment from Spain’s central government, a key approval for the Chinese-owned SAIC group that owns MG. Construction of the plant is scheduled for 2027, with assembly expected to begin the following year.
The factory will be located within the Ferrol port area to speed up logistics. Shipments of parts will arrive by sea, while finished vehicles can be shipped directly to other European markets without extra transport steps. The facility will include assembly lines, storage spaces, technical offices, and its own test track.
MG also plans to expand the site later, potentially increasing the total built area beyond 100,000 square meters to support logistics and production growth.
Employment and Supplier Impact
The plant is expected to create around 1,000 direct jobs, splitting roughly between 540 production roles and 460 logistics-related positions linked to the port. Including indirect employment, the total impact on the local economy could reach 2,000 jobs in the Ferrol area.
Nearby As Pontes is also set to attract suppliers and service companies connected to the factory. This industrial cluster development might add another 300 auxiliary jobs, strengthening the regional automotive supply chain.
Strategic Benefits for MG in Europe
This move allows SAIC to avoid import tariffs on Chinese-made electric cars entering the European Union. For a company targeting nearly 400,000 annual sales across Europe, producing inside EU borders removes those extra costs. The Ferrol plant will be MG’s first factory on EU soil, marking Spain as a key part of its global production network, particularly for compact city cars.
While some permits still need to be finalized, the recent government approval confirms Ferrol as the base from where MG will supply the European market.
Source: motor.es
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