China’s SAIC Motor Corp has selected Spain’s Galicia region for its inaugural manufacturing site inside the European Union, the regional government said on Monday. The proposed facility will be built at the port of Ferrol and is being treated by local authorities as a strategic priority for the area.
Galicia’s president Alfonso Rueda outlined key elements of the plan, saying the initial investment will be roughly 200 million. The scope of the project encompasses not only vehicle assembly but also a logistics hub connected to the plant. The regional government emphasized that the investment still requires authorization from Spain’s central government under foreign direct investment rules.
SAIC, the owner of the MG marque that has gained traction in European markets, intends to source many components locally, the government said. Officials estimate the factory will directly employ about 1,000 people, with additional indirect employment expected through the supply chain and logistics operations connected to the plant.
Pending the necessary approvals, construction is planned to begin next year. The company projects the plant will commence operations in 2028. The development is structured in phases - once the second phase is complete, the facility is expected to reach an annual production capacity of 120,000 cars.
Implications for local industry and markets
The project links manufacturing activity with port logistics and regional supplier networks. By indicating that many parts will be sourced locally, the plan suggests potential demand for components manufacturers and logistics providers in Galicia. The approval process with Spain’s central government means the timetable depends on regulatory clearance for foreign direct investment.
Next steps and timeframe
- Central government approval for foreign direct investment is required before the project can proceed.
- Construction is slated to begin next year, subject to those approvals.
- Operational start is planned for 2028, with a second phase to expand capacity to 120,000 units per year.