(Refiles to add euros to headline)
* Leipzig plant to start making Megacity Vehicle in 2013
* CEO says eastern German site is its most flexible
* Factory expansion to create some 800 jobs
LEIPZIG, Germany, Nov 5 (Reuters) - BMW, the world's largest premium automaker, will invest about 400 million euros ($565.7 million) in its Leipzig plant in eastern Germany due to build its electric-powered Megacity Vehicle starting 2013.
A landmark project for the group, the car will sport a body made of carbon-fibre produced in a joint venture with SGL Group instead of steel, reducing weight and boosting the range of the lithium-ion battery.
"We made a conscious decision to produce the car in Germany, at our plant in Leipzig - our newest and most cutting-edge facility with the most flexible structures," Chief Executive Norbert Reithofer said in a statement on Friday. German Chancellor Angela Merkel attended the ceremony marking the plant's expansion, which will create an additional 800 jobs.
(Reporting by Angelika Gruber)