BMW to build car plant in Hungary for 150,000 units a year

German automaker BMW says it will build a plant in eastern Hungary to manufacture up to 150,000 conventional and electric cars a year on a single production line.

BMW said Tuesday that the plant near the city of Debrecen will cost around 1 billion euros ($1.17 billion) and create over 1,000 jobs.

Debrecen, about 220 kilometers (137 miles) east of Budapest, was chosen "primarily for its very good infrastructure, suitable logistics connections and proximity to the established supplier network."

Peter Szijjarto, Hungary's foreign affairs and trade minister, said BMW's investment will contribute to the country's economic competitiveness and further strengthen business relations between Hungary and Germany.

The company said Europe accounted for almost 45 percent of its vehicle sales in 2017, with 1.1 million units sold.