MG heads to Spain: a Ferrol plant, 2,000 jobs and a long bet on Europe

© A. Krivonosov

China's SAIC is preparing the first car plant for its MG brand in Spain. The site will be located near the outer port of Ferrol in Galicia, and the project has already been granted strategic industrial status.

According to Motor.es, the Galician authorities have disclosed new details of the project as part of the public consultation and environmental impact assessment. The plant is set to start operations by the end of 2028, provided construction begins in 2027. Planned capacity is up to 120,000 vehicles a year.

Crucially, this looks more like an assembly and logistics hub than a classic full-cycle car plant. Stated investment stands at €196.4 million. That is modest for deep localisation, but enough for a large assembly complex with strong port logistics behind it.

The project will be rolled out in two phases. The first phase brings the main assembly building, offices, warehouses, a test track, finished-vehicle yards and supporting infrastructure. Then logistics capacity and storage zones will be expanded. The documents also mention key manufacturing processes: stamping, body shop and paint shop.

MG expects to create around 1,000 direct jobs. Of these, 540 will be tied to production and 460 to logistics. Up to another 1,000 jobs may appear indirectly — across the supply chain, transport and related services. A separate role is assigned to the As Pontes area, where interior component production, chassis-part processing and assembly operations are planned.

For SAIC this is not just a local investment. MG has already become one of the most successful Chinese brands in Europe: last year it sold more than 300,000 vehicles on the continent, including over 45,000 in Spain. Local assembly helps cut logistics, soften tariff risks and look less «imported» against the backdrop of growing EU pressure on Chinese electric cars.

For the European industry this is a worrying but logical signal. While Volkswagen, Stellantis and Renault count costs, Chinese companies are starting to build their own anchor points in Europe. In this scheme Spain gets jobs and investment, and SAIC gains access to the market, infrastructure and a politically more comfortable badge.

For other markets the story matters as an example of the next stage of Chinese expansion. First Chinese brands arrive as imports, then take share on price and equipment, and then begin localising wherever the market promises a long game. MG in Spain shows the fight is no longer only over the buyer — it is over factories too.