Mercedes investing €1 billion in Poland to build first electric-only van plant

Mercedes-Benz has announced plans to invest over €1 billion to establish a factory in Poland that will be the German automotive giant’s first plant to exclusively produce electric vans.

“We will produce the vehicles of the future,” said Mathias Geisen, head of Mercedes-Benz Vans, speaking alongside Polish Prime Minister Mateusz Morawiecki after the two sides signed a memorandum of agreement. “This is a step towards emission-free mobility.”

“We want to invest over a billion euros [here] in the coming years,” he added, quoted by the Polish Press Agency (PAP). “We thank the prime minister, the entire Polish government, for good cooperation based on trust.”

Poland has in recent years attracted a number of investments from global automotive giants, including Volkswagen and Fiat Chrysler. But the size of Mercedes’ investment – €1.3 billion, according to the Polish government – is the largest so far, reports the Dziennik Gazeta Prawna daily.

“This is a clear indicator of how we are developing production and industry…for Polish and foreign investors,” said Prime Minister Mateusz Morawiecki. “We are creating the best possible conditions for economic development.”

The new facility will be located in the southwestern town of Jawor, where Mercedes already has a plant producing petrol and diesel engines as well as batteries for electric vehicles.

Creating the new factory alongside the existing facility “will help us ensure long-term competitiveness…and enable Mercedes-Benz Vans to successfully enter the electric era”, said Geisen.

The site is expected to begin production by 2025 and will create up to 1,000 new jobs, said Morawiecki. The development and technology ministry, however, claimed that over 2,500 people will find work there.

Previous reports had indicated that Mercedes would work with American electric vehicle manufacturer Rivian at the new plant in Poland. But the US firm announced today that it was walking away from the deal and would instead focus on its own vehicles.

Daniel Tilles

Daniel Tilles is editor-in-chief of Notes from Poland. He has written on Polish affairs for a wide range of publications, including Foreign Policy, POLITICO Europe, EUobserver and Dziennik Gazeta Prawna.