Germany based commercial vehicle manufacturer Diamler Truck's Chinese joint venture (JV) Beijing Foton Daimler Automotive (BFDA) is planning to build a new EUR135m engine plant in Beijing.
The facility will be built in Beijing's Hairou district and will be part of Daimler's truckmaking JV with China based Beiqi Foton Motor.
According to the Diamler, construction on the new plant is expected to begin in first half of 2013 and will have a production capacity of up to 45,000 engines per year.
Expected to be operational in 2014, the new plant will produce type OM 457 diesel engines for the JV's trucks manufactured under the Auman brand.
Diamler said that the type OM 457 diesel engines are currently powering Mercedes-Benz commercial vehicles in Europe and Latin America.
Further the China JV is also planning to increase the proportion of engine components acquired locally, from the current 40% to 65% in the long term, until then the engines will be supplied by Daimler's Mercedes-Benz facility in Mannheim, Germany.
