The announcement marks the expansion of the global production network as part of the "Mercedes-Benz Vans goes global" growth strategy as well as plans for future growth in the North American van market.

Within the total area of more than 200 acres (more than 800,000 m²), the division will create a completely new body shop, a paint shop and an assembly line. Construction of the new factory is scheduled to begin in 2016.

The manufacturer said the new plant and the vehicles 'Made in USA' will enable the company to more economically meet the growing demand from North American customers in the future and to considerably reduce delivery time on this market.

"Today is a very important day for Mercedes-Benz Vans and certainly also a very significant day for the Charleston area. We are investing around half a billion dollars to create a top-notch Mercedes-Benz van plant here in South Carolina. This plant is key to our future growth in the very dynamic North American van market," said Volker Mornhinweg, head of Mercedes-Benz Vans, at the official announcement of the plant's location.