Mercedes begins works at EUR 135 mln e-vehicle engine factory in Romania

Construction works kicked off on February 16 at Sebes in central Romania (Alba County) for the factory where Star Assembly and Star Transmission, the local divisions of Mercedes-Benz AG, will produce electric motors for the new line of cars with EQ batteries starting in 2024.

For this investment, the German group was granted RON 185 mln (EUR 37 mln) in state aid. The total value of the investment, including the production equipment, amounts to RON 674 mln (EUR 135 mln), according to the data published by the Ministry of Finance, quoted by local Adevarul.

Mercedes group has already invested nearly EUR 600 mln in production capacities, notably a gearbox factory in Sebes.

Eight-speed dual-clutch automatic gearboxes, as well as nine-speed transmissions for Mercedes-Benz, are assembled at Star Assembly.

The Daimler Group has, through its two subsidiaries in Romania, Star Transmission Cugir and Star Assembly Sebeş, more than 3,000 employees.

Last summer, Star Assembly representatives told Ziarul Financiar hat “the production units in Romania, in Sebeş and Cugir, are an important part of the production network [...] of Mercedes-Benz cars globally. Factories are now fully utilized.” The company also said it was looking to change the production portfolio of its plants.

(Photo source: Gov.ro)