PRAGUE, March 31 (Reuters) - Daimler Truck will launch a new facility in the Czech Republic to take on some production from the group's existing production network as it seeks to reduce costs, the
Daimler Truck Launches New Mercedes-Benz Facility in Czech Republic for Cost Efficiency
Overview of Daimler Truck’s Expansion in the Czech Republic
Announcement and Investment Plans
PRAGUE, March 31 (Reuters) - Daimler Truck will launch a new facility in the Czech Republic to take on some production from the group's existing production network as it seeks to reduce costs, the company said on Tuesday.
Under the plans, the group will invest a low to mid three-digit million-euro amount in a new production plant for its Mercedes-Benz Truck unit in the Czech town of Cheb.
Strategic Objectives and Management Statement
"With our new assembly plant in Cheb, we are strengthening the competitiveness of our production network with a clear focus on cost optimization and complexity management," Mercedes-Benz Truck CEO Achim Puchert said in a statement.
Production Capacity and Job Creation
The plans call for an annual production capacity of around 25,000 units in Cheb. Over 1,000 jobs are expected to be created, according to the statement.
Impact on Existing Production Sites
The new site will take on some of the production from the truck maker's German site in Woerth and its Turkish site in Aksaray.
Role of Woerth and Global Production Network
Woerth is to remain the largest volume site within the production network and will also play a key role in Daimler Truck's growth strategy in the defence sector, the statement said.
The German company is one of the world's biggest truckmakers, with more than 40 production sites around the world.
Czech Republic’s Automotive Sector and Industry Response
The Czech Industry Ministry plans a news conference detailing a "new global investor" at 1600 GMT on Tuesday but declined to provide more details.
The Czech economy leans heavily on the automotive sector, which produced 1.4 million passenger cars last year in the country of 10.9 million.
(Reporting by Jason Hovet and Rachel More, Editing by Friederike Heine and Tomasz Janowski)
