Opel is expanding its engine operation in Szentgotthárd in south west Hungary with a EUR500m (US$657m) investment that will create 800 jobs.
Production of the engines will begin at the end of 2012. At full capacity, the plant has an output of 500,000 units annually.
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The car maker will build a family of small and medium gasoline engines, as well as a family of medium-sized diesel engines at the plant.
The new engines will be installed in various Opel models, from the small Corsa to the mid-sized Insignia.
“The cutting edge technology planned with a new investment and the high degree of flexibility will make Szentgotthárd one of the most modern engine plants worldwide,” said Opel/Vauxhall vice president manufacturing Reinald Hoben.
The engines will be transported by rail to Opel/Vauxhall plants in Germany, the UK, Poland and Spain.
