Official: Mercedes chooses Poland over Romania for new engine plant

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It’s official! Mercedes has chosen Poland as the home for its second engine plant outside native Germany. Several other locations were taken into consideration, including Romania, as we have exclusively reported last month.

The new production facility will be established in Jawor, about 70 kilometres west of Wroclaw, following a planned investment of approximately 500 million euros for the first stage of the new engine site.

First factory of Daimler in Poland 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.

“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.

The new factory will allow Mercedes to react more flexibly to market changes across several plants. The powertrain production compound is still managed by the lead plant in Untertürkheim. In Germany, Mercedes also assembles engines and related components in its facilities from Berlin, Hamburg and Kölleda.

Mercedes-Benz powertrains are also produced outside of Germany. Among the additional locations, the engine factory in Beijing, China (BBAC joint venture) and the US plant in Decherd, Tenessee, which operates as part of the strategic cooperation between Daimler and the Renault/Nissan Alliance. The Daimler subsidiary Star Transmission in Romania assembles transmissions and produces parts and components.