October 24 (SeeNews) - Romania’s Star Assembly, a fully-owned subsidiary of Mercedes-Benz, announced it will invest a nine-figure sum to extend its production portfolio and include the assembly of electric drive units for new generation Mercedes-EQ electric vehicles starting 2025.
The 30,000 sq m production facility will be housed on the current site of the Star Assembly factory, in the central Romanian city of Sebes, and serve assembly and logistics functions, the Mercedes-Benz unit stated in a press release on Friday.
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Construction will begin in the first quarter of 2023 after land preparations are completed.
The investment aims to reinforce Mercedes-Benz’s electric mobility strategy and prepare Star Assembly for a fully electric future, after having been set on this trajectory since 2020, when the unit began producing 8-speed dual-clutch transmissions.
The factory will be carbon neutral, with the energy supply being secured through renewable energy sources.
Data from Romania’s finance ministry shows that Star Assembly plans a total investment of 674.4 million lei ($133.72 million/137.27 million euro), of which 185.5 million were requested by the company as state aid.
Founded in 2013, Star Assembly is responsible for assembling various types of gearboxes for the global Mercedes-Benz production network.
According to the latest finance ministry data, Star Assembly posted a net profit of 326 million lei in 2021, up 34.4% on the year.
(1 euro=4.913 lei)
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