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Daimler Truck plans Czech production site for Mercedes unit (updated)

Adds detail on production network, executive quote

PRAGUE, March 31 (Reuters) - Daimler Truck DTGGe.DE will launch a new facility in the Czech Republic to take on some production from the group's existing production network as it seeks to reduce costs, the company said on Tuesday.

Under the plans, the group will invest a low to mid three-digit million-euro amount in a new production plant for its Mercedes-Benz Truck unit in the Czech town of Cheb.

"With our new assembly plant in Cheb, we are strengthening the competitiveness of our production network with a clear focus on cost optimization and complexity management," Mercedes-Benz Truck CEO Achim Puchert said in a statement.

The plans call for an annual production capacity of around 25,000 units in Cheb. Over 1,000 jobs are expected to be created, according to the statement.

The new site will take on some of the production from the truck maker's German site in Woerth and its Turkish site in Aksaray.

Woerth is to remain the largest volume site within the production network and will also play a key role in Daimler Truck's growth strategy in the defence sector, the statement said.

The German company is one of the world's biggest truckmakers, with more than 40 production sites around the world.

The Czech Industry Ministry plans a news conference detailing a "new global investor" at 1600 GMT on Tuesday but declined to provide more details.

The Czech economy leans heavily on the automotive sector, which produced 1.4 million passenger cars last year in the country of 10.9 million.

 (Reporting by Jason Hovet and Rachel More, Editing by Friederike Heine and Tomasz Janowski)

 ((jason.hovet@thomsonreuters.com;))

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