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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