After months of speculation and numerous trips back and forth to China, Galicia's industrial landscape is preparing for a significant transformation. Automotive giant SAIC Motor has given its definitive approval to Galicia , confirming that the province of A Coruña will be home to its first major production venture within the European Union. This is not just a rumor, but a formal application already under consideration by the relevant institutions, aimed at reshaping the region's economic fabric.
This is no ordinary announcement; it's a project expected to mobilize around €200 million and generate approximately 2.300 jobs, both direct and indirect. The arrival of MG's parent company represents a significant boost for the Ferrolterra region, which has long sought an economic stimulus to reposition itself at the forefront of technology and manufacturing after decades of challenging industrial restructuring.
A distributed infrastructure to maximize logistics
SAIC's strategy is not limited to a single location, but rather branches out to leverage the strengths of different sites. The outer port of Ferrol will be the heart of assembly and logistics, taking advantage of its direct access to the sea to move vehicles and components quickly to international markets. Meanwhile, the town of As Pontes will play a crucial role, assuming critical storage and distribution functions, allowing industrial activity to thrive and grow without being hampered by space constraints.
The distribution of jobs is also fairly well defined, with a thousand direct jobs planned for the port area and just as many indirect jobs that will boost the local component supplier network . In addition, some 300 workers will join the workforce at the complementary facilities in As Pontes, creating a labor network that aspires to be the new driving force of the area. It is hoped that this development will not only attract capital but also help to establish a population in an area that urgently needs long-term projects.
Bypassing tariffs and opting for the European label
One of the main reasons that has driven SAIC to travel halfway around the world to manufacture here is related to Brussels' trade policy. With tariffs on Chinese electric cars tightening, producing in Europe is the smartest solution to maintain competitive prices at dealerships. By manufacturing in Spain, the MG brand can proudly display its European credentials and avoid additional costs that would otherwise be passed on to the end customer—something the company wants to prevent in order to maintain its leading sales position.
To comply with current regulations and EU incentives, the plant cannot simply be a bolt-on assembly center for imported parts. The goal is to achieve a minimum of 70% local manufacturing , integrating component companies already operating in the Galician cluster and fostering the creation of new suppliers. This condition is what truly adds value to the project, as it requires the multinational to establish deep roots in the Spanish industrial ecosystem, ensuring that technological expertise remains within the country.
Project timeline and next steps
Although the news has been welcomed by the business community, we won't see cars rolling off the assembly lines tomorrow. The plans have a timeline starting in 2027 with the commencement of construction on the facilities. If everything goes smoothly and there are no last-minute bureaucratic hurdles, the first electric and hybrid vehicles are expected to leave the factory during 2028, ready to hit the roads across the continent after passing the necessary quality controls.
To ensure these deadlines are met, the regional government has done its part by declaring the initiative a Strategic Industrial Project. This means that administrative procedures will be expedited to prevent permits from becoming a bottleneck. Even so, there is still work to be done, as specific authorizations from the Council of Ministers and the corresponding port concessions are needed to occupy the necessary land in the outer port—a process that requires coordination among different political bodies.
With a production capacity aiming for nearly 120.000 units annually, the impact of this factory will be felt far beyond the borders of Galicia. The consolidation of this new industrial hub in the north will complement the strength of other Spanish plants and reinforce our country's position as a key player in the energy transition. It's no small feat that a powerhouse like SAIC chooses Spain over other European options, demonstrating that the experience of our workforce remains a highly valued asset abroad.
The arrival of SAIC Motor in A Coruña represents a fundamental turning point for the Spanish automotive industry, marking the beginning of an era where local manufacturing becomes the best defense against global trade tensions. The combination of significant investment, a massive number of jobs, and a commitment to sustainable mobility places Ferrol and As Pontes at the heart of Europe's industrial strategy for the coming years. As the project progresses toward its final opening, collaboration between local government and businesses will be crucial for this Asian giant to become an engine of growth that benefits the entire community.