Mercedes-Benz Vans to Invest $500 Million in New Manufacturing Plant; 1300 New Jobs Expected

Mercedes-Benz Vans, a division of Daimler, announced plans to invest around half a billion dollars to establish a new, full van manufacturing plant in Charleston County.

The new production plant in North Charleston, S.C. will supply the North American market with the next-generation Sprinter, creating 1,300 new jobs over the next several years.

On approximately 200 acres off of Palmetto Commerce Parkway, Mercedes-Benz Vans will create a completely new body shop, a paint shop and an assembly line. Construction of the new factory is scheduled to begin in 2016.

The new Sprinter plant in the United States is considered strategically essential for Mercedes-Benz Vans as the large van segment is expected to grow rapidly in North America over the next few years. The new plant and the vehicles ‘Made in the USA’ will enable Mercedes-Benz Vans to more economically meet the growing demand from North American customers in the future and to considerably reduce delivery time on this market.

The Mercedes-Benz Sprinter is the world’s leading large van, and more than 2.8 million Sprinters have been delivered to customers in around 130 countries worldwide. In 2014, the company delivered approximately 26,000 Sprinters to U.S. customers, making the United States the company’s second-largest sales market behind Germany. The Sprinter has been available in the U.S. since 2001, and today holds approximately nine percent of the country’s large van market. The company has operated its current van assembly operation in Charleston County since 2006.

Mercedes-Benz Vans pursues a dual-brand strategy in the U.S., where it offers the Sprinter as both a Mercedes-Benz and a Freightliner-branded vehicle. Sprinters of both brands will also roll off the assembly line at the future plant in Charleston. Besides the Sprinter, the Mercedes-Benz Vans division will also add the Metris series of medium-sized vans to its product range in the U.S. beginning in fall this year.

The Coordinating Council for Economic Development approved job development credits and a $14 million Closing Fund grant to assist with the cost of real property improvements related to the project.