Mercedes-Benz to build all-electric van factory in Poland

German vehicle manufacturer Mercedes-Benz plans to add a plant for all-electric vans at its location in the southern Polish town of Jawor, according to a press release on Monday, reported dpa.

"As we flexibly manufacture vans with combustion and electric drivetrains in all our existing plants, we will build our first pure electric plant in Jawor," said Mathias Geisen, the head of Mercedes-Benz Vans.

This is part of the company's reorganization of its European production network, "marking a new milestone in its transformation as a provider of locally emission-free mobility," read the press release.

According to statements made at a press conference in Warsaw together with Polish Prime Minister Mateusz Morawiecki, the company intends to invest over €1 billion in the plant over the coming years, to be directed towards the production of all-electric vans.

"The established location enables van division to optimize costs and supply chain as well as energy-efficient production of new generation vans," said the press release.

"The decision about the location and the concrete implementation of the project still depends upon the final fulfilment of various framework conditions, including the granting of aid for the investment in Jawor."

The carmaker has maintained an engine plant with over 800 employees in Jawor since 2017.

Meanwhile, US electric carmaker Rivian has put on hold its plans for joint van production with Mercedes-Benz. Though the partnership was only announced in September, Rivian is currently focusing on other projects, according to both companies.