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Daimler to invest EUR300m to increase transmission production in Romania

ABR Staff Writer Published 25 April 2013

German automaker Daimler is planning to invest about EUR 300m to expand the production capacity at its Romnian subsidiary Star Transmission, in a bid to support production as its Stuttgart-Hedelfingen transmission plant is operating at full capacity.

Star Transmission operates two production units in Romania, at Cugir and at Sebes, which are engaged in manufacturing components for motors and transmissions for all Mercedes-Benz vehicles since 2001.

Daimler Romania investment

Daimler Board of Management for Manufacturing and Procurement Mercedes-Benz Cars and Mercedes-Benz Vans member Andreas Renschler said the expansion of production network to include an additional location for transmission assembly is designed to perfectly complement the existing capacities.

"Our goal here is to serve the high customer demand with even greater flexibility in the future," Renschler said.

Upon the commencement of operations at the new location in Sebes, Daimler will start production of the 5-speed automatic transmission from the mid-2013, while from early 2014 plant will also assemble the current generation of front dual clutch transmissions.

DAimler transmission investment in Romania

Additionally, the German firm is planning to involve the Sebes production unit in manufacturing its new generation of automatic transmissions for cars from 2016, while the decision is awaiting the support of the Romanian government for the expansion of the production capacities.

Mercedes-Benz Cars manufactures powertrains at several plants in Germany and abroad, while the Stuttgart plant is the central manufacturing point that produces engines, transmissions and axles.

The German carmaker has invested about EUR900m at Stuttgart plant and is planning to invest additional EUR 800m in 2013.