Daimler is to plough around EUR500m (US$575m) in a new engine production facility in Poland, creating several hundred new jobs.

The first Mercedes-Benz Cars plant in Poland will be in Jawor, around 70km west of Wroclaw, and will produce four-cylinder gasoline and diesel engines for passenger cars.

The location decision and implementation of the project are dependent on various final commitments regarding investment conditions, including granting State aid.

“The planned establishment of a new engine plant in Poland is a further step in our global growth strategy,” said Mercedes-Benz production and supply chain management board member, Markus Schäfer.

“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.”

Production is slated to start at the new Daimler site in 2019.

“With the new facility in Jawor, we want to start the second engine production of Mercedes-Benz Cars outside Germany,” added head of production powertrain Mercedes-Benz Cars and site manager Mercedes-Benz plant, Untertürkheim, Frank Deiss.

“This allows us to react flexibly to market changes across several plants. The powertrain production compound is managed by the lead plant in Untertürkheim.”

Future employees at the engine plant in Poland will be prepared for their new jobs with training courses.

“The planned construction of a new engine plant in Poland by Daimler is evidence of the good state of our economy,” noted Polish Economy Minister and Deputy Prime Minister, Mateusz Morawiecki.

“We are open for international investment and will systematically implement our plan for sustainable development so we are attractive for further investors.

“Mercedes-Benz will build modern diesel and gasoline engines at the site in Jawor. I hope 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 17 June, 1991.”

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.