Mercedes to build €500m engine factory in Poland

04.05.2016 //

Carmaker Daimler will build a €500m factory in Poland to produce Mercedes-Benz engines from 2019, the company announced on Wednesday.

The plant, located in Jawor, a small town in the south-west of the country, will be Mercedes’ first in Poland, and comes amid a push by western carmakers into central and eastern Europe, where costs are lower but standards often match or exceed older factories in more established markets, writes Henry Foy.

Mercedes said the factory will build four-cylinder gasoline and diesel engines for Mercedes-Benz passenger cars and create several hundred jobs, adding that the project was dependent on the granting of state aid.

“The planned establishment of a new engine plant in Poland is a further step in our global growth strategy. Capacity expansion in Eastern Europe reflects the increasingly international orientation of our powertrain production compound. This will lead to more flexibility and efficiency in our worldwide production network”, stated Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Production and Supply Chain Management.

Source: http://www.ft.com/