An environmental group has withdrawn its appeal against Audi’s plans to expand the Gyor vehicle plant in Hungary, the company disclosed on Wednesday.
This clears the way for the company’s 900-million-euro ($1.29 billion) expansion plan, which will produce 1,800 jobs. Audi, which is the luxury brand of Volkswagen AG, intends to increase production levels to 125,000 vehicles annually once the expanded Gyor facility starts full operations by 2013.
The company is currently building the A3 cabriolet, TT roadster and TT coupe at the Gyor plant and it intends to manufacturer the A3 sedan and the RS3 sportback there too, which will give a great boost to the export-driven economy of Hungary.
Monika Czechmeister, spokesperson for Audi, told Reuters that the company has been informed on Wednesday that the environmental group has withdrawn its appeal. Currently, the company is awaiting the construction permit, and once the permits are completed, it will launch the investments, Czechmeister said.
Last January, the European Commission approved the expansion of the plant on the grounds of paramount public interest. However, the environmentalist group appealed last April against the land use permit issued to the company, stating that it was concerned for wildlife in the affected area.
This area includes a portion of a nature reserve. In addition, the group contested that the ruling that approved the land use permit contained procedural errors. Information on why the group has withdrawn its appeal was not disclosed. Furthermore, the group could not be contacted for comment.