Daimler has expanded its operations in Russia by opening their first local car plant. Located about 40 km (25 miles) northwest of Moscow, the Moscovia factory required an investment of more than €250 million ($281 million) and will create over 1,000 jobs.

Several Russian and German high-ranking officials, as well as Mercedes-Benz representatives, were present at the opening ceremony. Chief among them was the President of the Russian Federation Vladimir Putin, who was a accompanied by the Trade Minister of the Russian Federation Denis Manturov and the Governor of the Moscow Region Andrej Vorobjov.

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The German Federal Minister for Economic Affairs and Energy Peter Altmaier, as well as Daimler CEO Dieter Zetsche and Member of the Divisional Board of Mercedes-Benz Cars Markus Schafer were also on site, as production of the E-Class Sedan kicked off. All cars made in Moscovia are aimed exclusively at the local market, where the automaker’s sales have more than doubled in the past 10 years.

“The Russian automotive market continues to be a key market for German car manufacturers”, said Altmaier. “The opening of the first plant of Mercedes-Benz Cars in Russia is a landmark for the commitment of Mercedes-Benz in Russia, but also that of German ventures in Russia overall.”

Stretching across an area of 85 hectares, the new factory was built in less than two years and is part of Daimler’s global production network that includes more than 30 locations across various countries. Besides the E-Class Sedan, the plant will also produce a number of SUVs in the near future.