Daimler has announced plans to set up shop in Poland by spending around €500 million for a brand new engine factory.

Good news coming from the city of Jawor where Mercedes-Benz Cars will open its very first plant in Poland which will create several hundred new jobs. These people will be in charge of producing several four-cylinder gasoline and diesel engines for the company’s passenger cars after an initial investment of approximately €500M ($574.4M). Daimler points out this major project wouldn’t have been possible without aid coming from the local authorities.

Located about 267 miles (430 kilometers) southwest from Poland's capital Warsaw, the new factory will effectively start making these power units in 2019 and is going to be the second engine plant outside Germany, after Beijing.

We remind you that back in March there was a rumor about the possibility of a new car factory in Poland, but Mercedes’ parent company Daimler has not issued any official comments regarding the gossip. The new assembly plant is believed to produce passenger cars based on the MRA platform that underpins a series of models, such as the C-Class, GLC, and E-Class.

It remains to be seen whether the new engine plant in Poland will be complemented by a car factory which would join other Daimler investments in Central and Eastern Europe, such as the Hungarian car factory and the Romanian gearbox facility.

Source: Daimler

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Production expansion at Mercedes-Benz Cars: Daimler plans new engine plant in Poland

  • First site of Mercedes-Benz Cars in Poland to be established in Jawor.
  • Planned investment of approximately 500 million euros in new engine production.
  • Markus Schäfer, Member of the Divisional Board Mercedes-Benz Cars, Production and Supply Chain Management: “The planned construction 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.”
Stuttgart/Jawor – Daimler AG plans to invest approximately 500 million euros in a new production facility in Poland, creating several hundred new jobs there. The first Mercedes-Benz Cars plant in Poland is to be established in Jawor, about 70 kilometres west of Wroclaw, and will produce four-cylinder gasoline and diesel engines for Mercedes-Benz passenger cars. The location decision and implementation of the project are dependent on various final commitments regarding the investment conditions, including the granting of state aid for the investment in Jawor. An investment of approximately 500 million euros is planned for the first stage of the new engine site.
“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. Start of production at the new Daimler site is planned for the year 2019.
“With the new facility in Jawor, we want to start the second engine production of Mercedes-Benz Cars outside Germany. This allows us to react flexibly to market changes across several plants. The powertrain production compound is managed by the lead plant in Untertürkheim,” explained Frank Deiß, Head of Production Powertrain Mercedes-Benz Cars and Site Manager Mercedes-Benz plant Untertürkheim. The future employees at the engine plant in Poland will be prepared for their new tasks with extensive training courses.
“The planned construction of a new engine plant in Poland by Daimler AG is evidence of the good state of our economy. We are open for international investment and will systematically implement our plan for sustainable development so that we are attractive for further investors,” said Mateusz Morawiecki, Poland’s Economy Minister and Deputy Prime Minister. “Mercedes-Benz will build modern diesel and gasoline engines at the site in Jawor. I hope that the new plant will be a catalyst for further projects with technologically advanced products and will make the Polish economy even more innovative and competitive. This investment strengthens Polish-German cooperation and is symbolic, especially in view of the 25th anniversary of the Friendship Treaty of June 17, 1991.”
The Mercedes-Benz Cars powertrain production compound
The Mercedes-Benz Cars powertrain production compound comprises several German and international sites, managed from the lead plant in Untertürkheim. Engines, transmissions, axles and related components are produced in Untertürkheim. The focus of the Mercedes-Benz plant in Berlin is on the development and production of ultramodern components and parts as well as engine production. The Mercedes-Benz plant in Hamburg develops and produces axles and axle components, steering columns, components for exhaust systems and lightweight structural parts. The MDC Power engine factory in Kölleda in the German federal state of Thuringia is a one-hundred-per-cent subsidiary of Daimler AG and produces four-cylinder engines for Mercedes-Benz and Mercedes-AMG vehicles. Engines and other major components are also produced outside of Germany. The Daimler subsidiary Star Transmission in Romania assembles transmissions and produces parts and components. The joint venture BBAC in Beijing, China, produces engines for local demands. As part of the strategic cooperation between Daimler and the Renault/Nissan Alliance, Infiniti produces four-cylinder gasoline engines for Mercedes-Benz at its US plant in Decherd, Tennessee.
Mercedes-Benz Cars Operations
Mercedes-Benz Cars Operations is responsible for passenger car production at 26 locations around the world within a flexible and efficient production network involving about 78,000 employees. Its tasks include the key functions of planning, technology factory, logistics and quality management. Last year, Mercedes-Benz Cars produced more than two million cars of the Mercedes-Benz and smart brands, setting a record for the fifth consecutive year. The network is organized around the production architectures of front-wheel drive (compact cars) and rear-wheel drive (for example S-, E- and C-Class) as well as the SUV and sports cars architectures. There is also a powertrain production compound (engines, transmissions, axles and related components). Each architecture production compound has a lead plant that serves as a centre of competence for the ramp-up of new products, technology and quality assurance. The focus of day-to-day work is on the continuous improvement and refinement of state-of-the-art production methods, which allow future high-tech vehicles to be produced in a way that is efficient, flexible and environmentally friendly, according to the typical Mercedes-Benz quality standards. All of this revolves around the employees and their expertise, whose work is systematically supported by ergonomic workplace design and intelligent automation. In addition to its own production plants, Mercedes-Benz is increasingly leveraging partnerships and utilizing capacities at contract manufacturers as part of its growth strategy.