Daimler Truck Defence has signed a memorandum of understanding with Polish defence group Polska Grupa Zbrojeniowa (PGZ) to start local assembly of Mercedes-Benz truck engines in Poland.
Under the agreement, Daimler Truck Defence, together with Mercedes-Benz Powertrain, a business unit of Daimler Truck, will provide engine components and support to Polish companies as they assume assembly activities.
PGZ, for its part, is expected to set up and operate the assembly facilities.
The two parties also intend to expand their work together over time to cover servicing, maintenance, repair and technical support.
Daimler Truck Defence CEO Dennis Kinzelmann said: "Together with PGZ, we are leveraging our proven engine portfolio while benefiting from the experience, synergies and economies of scale of our large-scale production network.
"At the same time, we are strengthening the close partnership between neighbouring European countries and their industries."
The engines assembled through the partnership are intended for defence vehicles produced by companies in the PGZ Group for the Polish Armed Forces.
Production is scheduled for a line in Kalisz, which is set to become operational next year and is projected in the longer term to assemble a four-digit number of Daimler Truck diesel engines annually.
At the start of the collaboration, the focus will be on Mercedes-Benz truck engines in the medium- and heavy-duty segments, with displacements ranging from seven to 15 litres and power outputs spanning 240kW (326hp) to 460kW (625hp).
Within Daimler Truck's broader vehicle portfolio, these engines are used in models including the Mercedes-Benz Unimog and Zetros.
The local assembly programme is expected to be expanded in stages.
Initial work will involve engines delivered in a largely pre-assembled state, with only selected components to be fitted, before progressing to completely knocked down kits made up of more than 700 individual parts for local assembly in accordance with defined quality standards.
The agreement also includes plans to create a competence centre in Poland focused on the maintenance, repair, overhaul and modernisation of Mercedes-Benz truck engines.
Daimler Truck will provide technical consulting, training and support for manufacturing and quality processes, including production line design, quality assurance, testing technology and painting.
"Daimler Truck Defence signs Poland engine assembly deal with PGZ" was originally created and published by Just Auto, a GlobalData owned brand.