Porsche’s new Macan model will be built there, a car described as the “little brother” of the Cayenne.
Opening on February 11th, the factory will make some of the 50,000 Macans that will be produced each year, a spokeswoman said.
It will also take on over 1,500 new employees – a boost for the Leipzig area which, like large parts of former East Germany, is calling out for more jobs.
Porsche as a company flourished in 2013, breaking its sales records from 2012 as it rolled out 147,290 cars.
The factory will sit near that of another big German car name – BMW. The manufacturer also has a plant in Leipzig where from Autumn 2014 its electric car model the i3 and the i8 will be made.
Car production is now so concentrated in the state of Saxony that half of all auto workers employed in eastern German are based there. However, 92.6 percent of industry employees are still in the west.
Meanwhile, new car registrations in Germany, a key measure of demand in one of the most crucial sectors of Europe's top economy, declined in 2013, data showed on Friday.
A total of 2.95 million new cars were registered last year, a decrease of 4.2 percent compared with 2012, according to data compiled by the KBA federal automobile agency.