Mercedes-Benz Vans plans to build a $500 million plant in Charleston, South Carolina, to supply the North American market with the company’s next-generation Sprinter van.
Construction is scheduled to begin in 2016.
“This plant is key to our future growth in the very dynamic North American van market,” Volker Mornhinweg, head of Mercedes-Benz Vans, said during a March 6 announcement of the factory’s location.
Mercedes-Benz said it expects the large-van segment to grow rapidly in North America during the next few years.
The company also said faces high U.S. import duties and a complex disassembly process for Sprinters made in Germany for export to the United States.
By building the vans at its U.S. plant, Mercedes-Benz said it will be able to more economically meet the growing demand from North American customers while reducing delivery time.
Mercedes-Benz said it plans to create more than 1,300 jobs at the facility, which will make the vans division one of the largest industrial employers in the region.
The site will include a body shop, paint shop and assembly line situated on more than 200 acres.
Mercedes-Benz Vans is a division of Stuttgart, Germany-based Daimler AG, which also builds Freightliner trucks and Detroit brand engines and components in North America.