German carmaker Daimler plans to invest some EUR 500 million in a new engine production plant in Jawor in the Lower Silesian region, southern Poland, conditional on a number of factors including state aid, Daimler said in a statement on its website.
“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,” Daimler said. “An investment of approximately 500 million euros is planned for the first stage of the new engine site.”
The Jawor plant will allow Mercedes to react more quickly to changes in demand across several production sites, Frank Deiss, head of Mercedes’s powertrain production, said in the statement.
“The planned construction of a new engine plant in Poland by Daimler is evidence of the good state of our economy,” Polish Economy Minister and Deputy Prime Minister, Mateusz Morawiecki said.
“We are open for international investment and will systematically implement our plan for sustainable development so we are attractive for further investors,” he added.
The Polish government will provide state aid for the new investment, the Development Ministry assured in an e-mailed statement.
The new plant will employ several hundred people and will produce gasoline and diesel engines for Mercedes-Benz passenger cars, Daimler said. Production in the new plant should be launched in 2019.
