Daimler is planning to invest about €500m in new engine production plant in the Polish city of Jawor.
The company signed property purchase agreement for the site with its Polish partners.
Jawor is the first production site of Mercedes-Benz Cars in Poland.
The plant will manufacture four-cylinder engines for Mercedes-Benz passenger cars.
Daimler had also established a subsidiary, Mercedes-Benz Manufacturing Poland (MBMP) to continue with its business in the country. This new company will handle the production responsibility at the upcoming facility.
Mercedes-Benz Cars, Production and Supply Chain Management member of the divisional board Markus Schäfer said: “The capacity expansion in Poland reflects the increasingly international character of our powertrain production compound. This will lead to increased flexibility and efficiency within our worldwide production network of Mercedes-Benz Cars.
“With the new Mercedes-Benz engine plant in Jawor, we, Dr Schenkel, his team and our local partners, are on the right track to the successful and consistent implementation of our growth strategy.”
Construction of the facility is scheduled to begin in 2017. Operations are expected to begin at the facility by 2019.
Mercedes-Benz Manufacturing Poland CEO Andreas Schenkel said: “Setting up the first plant of Mercedes-Benz Cars in Poland and managing engine production locally is going to be a very interesting and exciting challenge.
“I am particularly looking forward to working alongside my team of Polish and German colleagues.”
