Audi says appeal against Hungary expansion dropped

Reuters (Budapest) - A Hungarian green group has withdrawn an appeal against German car maker Audi's (NSUG.DE) planned expansion of its car plant in the western Hungarian city of Gyor, the company said on Wednesday.

This removes a key hurdle from the way of the 900 million euro ($1.29 billion) project, which would create 1,800 jobs.

Audi, a unit of Volkswagen AG (VOWG_p.DE), plans to lift production to 125,000 vehicles a year once the expanded plant in Gyor begins full production from 2013.

"We were informed today that the plaintiff has withdrawn the appeal," Audi spokeswoman Monika Czechmeister told Reuters.

"Now we are waiting for the construction permit, and when we have all the permits needed, we launch the investment," she said.

In April an environmental group appealed against the land use permit issued for Audi, saying it was concerned for wildlife in the affected area, which also includes part of a nature reserve. It also said the ruling that approved the land use for the site contained procedural errors.

Audi did not explain why the group had withdrawn the appeal, and the group could not be reached for comment.