WARSAW, Poland—German carmaker Daimler says it will build a 500 million euro ($551 million) factory in southwestern Poland that will produce a new generation of engines.
Daimler said Oct. 13 it will start construction on the new facility in Jawor next year and that production of engines will begin in 2019. The plant will reach its output capacity in 2020 with hundreds of thousands of engines made for various Mercedes car models.
Markus Schaefer, a board member in Daimler’s Mercedes-Benz Cars unit estimated the plant will create hundreds of jobs, and thousands more indirectly through the need for support services in the region, some 60 kilometres (37 miles) west of Wroclaw. Before this new factory plan, Daimler had offered about 250 jobs in Poland.
Poland’s Prime Minister Beata Szydlo said the investment was an example of how the country wants to develop and modernize its industry while welcoming foreign investors.