Mercedes-Benz’s parent company, Daimler, has laid the foundation stone that will culminate with car manufacturing in Russia, by starting construction work on a new plant.

Located in the Moscow region, which was selected thanks to its logistical connections, qualified manpower, and proximity to the capital city, the facility will cover all production steps, from body shop, to paint shop, and final assembly area.

Baptized the ‘Moscovia’ plant, it spans on a land area of around 85 hectares, and it will be home to more than 1,000 employees. The factory will receive a €250 million ($280 million) injection and will start putting together the E-Class from 2019, which will then be joined on the assembly lines by the GLC, GLE, and GLS SUVs.

All of these cars are destined for the regional car market, and the move is seen as “a strategic investment in an important sales market for Mercedes-Benz”, which is “strengthening” their “global competitiveness” and “extending” their “local footprint”, according to the Member of the Divisional Board of Mercedes-Benz Cars, Markus Schafer, who was present at the local ceremony.

In charge of the newly founded company Mercedes-Benz Manufacturing RUS (MBMR), which will manage production at the ‘Moscovia’ plant, will be Axel Bense.

“Establishing the first Mercedes-Benz Cars production site in Russia is an exciting challenge for me, which I am happy to meet along with my team. We have a close relationship with our Russian partners from politics and economy and look forward to continuing our successful cooperation”, said Bense. “As a good corporate citizen, we also want to get involved with the people of the Moscow region and become part of the community.”

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