Daimler to build high-tech car engine factory in Poland

Markets Associated Press

German carmaker Daimler will build a 500 million euro ($551 million) factory in southwestern Poland that will produce a new generation of engines for the company.

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Markus Schaefer, a board member in Daimler unit Mercedes-Benz Cars, said Thursday that production of the engines in Jawor will begin next year. The plant will reach its output capacity in 2020 with hundreds of thousands of engines made for various Mercedes car models.

Poland's Prime Minister Beata Szydlo said the investment was an example of how Poland wants to develop and modernize its industry, while inviting foreign investors in mutually beneficial deals.

The announcement came just days after Poland and France-based Airbus Helicopters exchanged recriminations after Warsaw cut short negotiations over a multibillion euro purchase of helicopters for its armed forces.