Daimler signs MoU with Iraqi government, another MoU signed for construction of Mercedes-Benz plant in Hungary
24 Jul 2008
Stuttgart: German automaker Daimler AG and the government of the Republic of Iraq have signed a memorandum of understanding (MoU) on future cooperation, which involves Daimler's willingness to support the economic revival of Iraq through various measures.In a separate deal, representatives of Daimler AG, the Hungarian Government and the city of Kecskemét have signed a memorandum of understanding for the construction of a Mercedes-Benz plant in Kecskemét, Hungary. This MoU will lead to a final contract being signed in autumn 2008.
The MoU with the Iraqi government was signed in the presence of Michael Glos, German federal minister for economic affairs. Paramount in this process is the provision of transport capacity, particularly trucks and buses, and also the provision of the required technical expertise. The two sides will together appoint a group of experts that will identify the market requirements as well as the financial, legal, and organisational possibilities.
Daimler has already started the operation of a training centre in Iraq as part of the Group's corporate responsibility activities in mid-February.Within the context of Daimler's intended activities in Iraq, it is planned to provide local employees with training so that they can gain the required qualifications.
Daimler plans to invest around €800 million for the construction of the new plant in Hungary. The plant will manufacture premium compact cars, which will have a close production network with the plant in Rastatt, Germany. The automaker will also employ 2,500 people for the plant. The plant in Kecskemét will roll out vehicles of the successor generation of the A- and B-Class from 2012.
The Memorandum of Understanding further includes agreements concerning the licensing procedure, acquisition of land as well as the development of the factory site of about 400 hectares. Additional planning includes a projected rail connection to the plant and the construction of an access road to the nearby feeder road of the M5, which is the North-South connection of the country as well as part of the European route 75 and leads through Kecskemét.
