New auto plant being built in southern Poland - PM

The plant in Gliwice is one of two Polish factories of the PSA Group. ARMANDO BABANI/PAP/EPA

A new Opel automobile plant, which will provide a minimum of 300 new jobs and investments worth more than EUR 230 mln, is being built in Gliwice, southern Poland, said Prime Minister Mateusz Morawiecki, who was visiting the city on Monday.

"A decision has been taken to build, here in Poland, another large Opel, Peugeot, commercial vehicle factory. It is common knowledge that these two companies are merging. Peugeot bought Opel a while back," said Morawiecki at a press conference

He stated that a year or two ago, it wasn't certain how things would play out. "Needless to say, the fusion of any large individual companies can result in the closures of some factories. Here, we have the opposite situation. The quality of the work of Polish workers, engineers and management is so high, that this big French company has decided to not only continue the production of cars, but also to begin the production of commercial vehicles," said Morawiecki.

The prime minister said that we will see the results of today's decision in 2030, 2040. "The new jobs created here, as well as the investments worth more than PLN 1 bln (EUR 230 mln - PAP) hold great promise for the region," stated Morawiecki.

He also pointed out that the auto industry comprises over 15 percent of the Polish export of goods. "This means that it is an extremely important part of our entire economy. At the same time, we also know very well that it is a hotbed of new technologies, innovation and improvement of production and operational processes. Thanks to this we can say that we are at the cutting-edge of technological development," said Morawiecki.

In about two-and-a-half years, the Opel factory in Gliwice, where passenger cars have been built for over 20 years, will become a manufacturer of large delivery trucks for the PSA Group. The plant will produce up to 100,000 large vans per year.

The plant in Gliwice is one of two Polish factories of the PSA Group. The group has five automotive brands: Peugeot, Citroen, DS, Opel and Vauxhall.