German automaker Mercedes-Benz has announced a plan to invest $500m to build a new plant to manufacture vans in Charleston, South Carolina.
The Charleston plant will produce the next-generation Sprinter for the North American market.
According to the automaker, with the introduction of the new plant, Mercedes is also expected to create 1300 new jobs making it one of the biggest industrial employers in the region.
The plant will be constructed across 200 acres, and will include a body shop, a paint shop and an assembly line.
According to Mercedes, US is one of the biggest van markets in the world, but the company faces high import duties and a complex disassembly process when importing Sprinters from Germany.
With the new plant, the company expected to meet the demands for the vehicle in the US as well as reduce delivery cost and time.
Mercedes-Benz Vans head Volker Mornhinweg said: "We are investing around half a billion dollars to create a top-notch Mercedes-Benz vanplant here in South Carolina. This plant is key to our future growth in the very dynamic North American van market.
"Charleston is an excellent location for our new plant. The region has very highly skilled workers, a dense network of reliable suppliers, and an outstanding logistics infrastructure that includes good transport connections to the nearby harbour."
