Audi may expand Hungary plant further from 2018

Reuters (Budapest) - Audi (NSUG.DE) could expand its Hungarian plant further after 2013 when its current expansion project is completed, the carmaker said on Monday.

Environmental licensing documentation, filed with the 2013 expansion plans of Audi's Gyor plant, showed the company planned a second phase of investment in 2017-2018, which could raise output to up to 339,264 vehicles a year -- or 1,000 per day.

When asked about these plans, a spokesman for Audi in Hungary said the currently planned 2013 expansion would raise capacity to 500 vehicles per day and it was possible that output could rise further in the years ahead.

"Bearing Audi's long-term growth strategy in mind, it is possible that production capacity shall increase at a later stage," Peter Lore told Reuters in emailed response to questions.

Lore did not comment on the 2017-2018 investment but said the licensing documentation filed with the expansion of the Gyor plant was based on "maximum technical production capacity."

The documentation, published on the website of the regional environment authority and dated November 26, said the project could create up to 15,000 jobs directly and through suppliers if all production capacities are utilized.

Audi, a unit of Volkswagen (VOWG_p.DE), decided in September 2010 to expand its plant in Gyor, northwest Hungary, to lift output to 125,000 vehicles a year from 2013 -- creating 1,800 new jobs and providing a major boost to economic growth.

Beginning in 2013, Gyor will fully produce models including the TT roadster, A3 Cabriolet and another A3 derivative.

Audi, one of Hungary's largest exporters, made 38,541 cars and 1.65 million engines last year according to figures published by the car maker earlier this month.

The Hungarian government expects economic growth to accelerate to 5 percent by 2013 from around 1 percent last year as car makers such as Audi expand production and Daimler AG's (DAIGn.DE) 800 million euro ($1.09 billion) Hungarian plant begins output from 2012.