German automotive firm Daimler has unveiled plans to build its first passenger car production plant in Russia, entailing an investment of more than €250M.

To be located in the Esipovo Industrial Park, at about 40km northwest of Moscow, the facility will have flexibility to produce SUVs and the E-Class sedans.

The new passenger car plant will feature all production steps, from the body show through paint shop to assembly. Production at the new site will be operated by the newly founded company Mercedes-Benz Manufacturing RUS (MBMR).

Markus Schäfer, member of the divisional board of Mercedes-Benz Cars, production and supply chain management said: “Russia is of strategic importance for Mercedes-Benz and an attractive growth market. That is why we expand our worldwide production network with a new plant at Esipovo Industrial Park.

“By establishing a local production we do not only achieve greater proximity to our Russian costumers, but also strengthen the international competitiveness of Mercedes-Benz Cars.”

The new plant, scheduled to commence operations in 2019, will create more than 1,000 jobs in the region.

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