PGZ and Daimler Truck Defence to assemble Mercedes-Benz engines in Kalisz

Polska Grupa Zbrojeniowa (PGZ) and Daimler Truck Defence have signed a letter of intent to begin the local assembly of Mercedes-Benz truck engines for defense vehicles in Kalisz, Poland. The project is scheduled to launch in 2027.

The agreement, signed during the International Defence Industry Exhibition (MSPO) in Kielce, outlines a phased approach to production. Initially, nearly complete engines will be sent to Poland for the installation of specific components. The long-term goal is to transition to Complete Knock-Down (CKD) kits, where engines consisting of over 700 parts will be assembled locally.

Target production is expected to reach at least 1,000 diesel engines annually. While the letter of intent establishes a framework for cooperation, it is not yet an executive contract. Daimler Truck Defence is expected to provide technical consultancy, training, and support for production line design and quality control to facilitate the transfer of technical competencies to the Polish industry.