Daimler plans to open EUR500m Mercedes engine factory in Poland

(James Pierce, CC BY)

German car maker Daimler AG will open a Mercedes Benz Manufacturing (MBM) engine factory near the town of Jawor, according to the daily Rzeczpospolita.

Jawor, in southwest Poland, is where Jaguar Land Rover had considered opening its factory before the it opted for Slovakia in 2015.

Daimler had reportedly been considering Russia and other Central European locations, but the situation has changed as there are no signs that Russia will recover soon from its economic slump, according to German publication Automobil Produktion.

Markus Schaeffer, MBM CEO, said the company was on the lookout for a location for its new plant at the start of March, and Poland was named among one of several possible sites.

“We are in talks with various investors, we aim to create work places, particularly in regions where there’s high unemployment,” Prime Minister Beata Szydło told at a news conference on April 25th. “At the moment I can say that there are talks underway with various entities.” The new plant would reportedly bring 1,500 jobs.

Daimler announced it will produce four-cylinder gasoline and diesel engines for Mercedes-Benz passenger cars. “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,” Financial Times quotes Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Production and Supply Chain Management.

Daimler’s plans also include an engine plant in Poland, the business paper Puls Biznesu reported, according to Automobil Produktion. A Daimler spokesman told Automotive News Europe that “there are currently no decisions regarding [additional] local production of Mercedes-Benz passenger cars or engines in Europe.”

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