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19 July, 2001A total of 10,000 new jobs could be created in eastern Germany.
GERMANY: The German metalworkers' union IG Metall has welcomed the announcement by German auto multinational BMW that it will open a new plant near Leipzig, in eastern Germany. With daily production capacity at the new plant expected to reach 650 cars, 5,500 jobs could be created directly at the new site and another 4,500 jobs at suppliers.
Construction of the new facility, at a cost of 1 billion euros ($859 million), is scheduled to begin this winter, and production of the new model of the BMW 3-Series will start in 2005. The present 3-Series model is being manufactured in Regensburg, which will switch to the newly invented 1-Series after the opening of the plant in Leipzig.
With approximately 17 per cent unemployment in the eastern part of the country, which is over double that of western Germany, news of BMW's decision was especially well received in Leipzig.
As some 250 European cities were competing to house the new plant, IG Metall sees the decision as a confirmation that cars can be built competitively in a so-called high-wage country.
Construction of the new facility, at a cost of 1 billion euros ($859 million), is scheduled to begin this winter, and production of the new model of the BMW 3-Series will start in 2005. The present 3-Series model is being manufactured in Regensburg, which will switch to the newly invented 1-Series after the opening of the plant in Leipzig.
With approximately 17 per cent unemployment in the eastern part of the country, which is over double that of western Germany, news of BMW's decision was especially well received in Leipzig.
As some 250 European cities were competing to house the new plant, IG Metall sees the decision as a confirmation that cars can be built competitively in a so-called high-wage country.