Daimler plans to build €500m Mercedes engine factory in Poland

Daimler said it prepares to invest about 500 million euros (575 million USD) in a new engine factory in Poland to widen its manufacturing footprint.

The plant will produce four-cylinder gas and diesel motor for Mercedes-Benz automobile and will produce several hundred jobs, Daimler stated in a statement today.

The factory will remain in Jawor, about 430km southwest of Warsaw, and will be Mercedes’s very first plant in Poland and 2nd engine facility outside Germany after China.

The execution of the task is dependent on different financial investment conditions, including the approving of state aid.

The 500 million euros is prepared for the first stage of its scheduled financial investment, the firm stated. Daimler has not discussed German media reports that it plans a car production factory in Poland instead of in Russia where the car market is in a prolonged downturn.

Daimler’s investments in main and eastern Europe consists of a vehicle factory in Hungary and a transmissions factory in Romania.