China Construction Machinery Business Online
Beijing Foton Daimler will build engine plant In China
Post Date: 2012-07-20

Beijing Foton Daimler Automotive Co. Ltd. (BFDA), the joint venture of Daimler AG and Chinese truck manufacturer Foton, will build a new engine plant next to its headquarters in Beijing by the first half of 2013. The new plant will be invested by more than $165 million (€135 million).

"This investment once again demonstrates that we are putting our Global Excellence strategy into practice and that our involvement in China is of a sustained, long-term nature,” said Andreas Renschler, the Daimler board member responsible for Daimler Trucks and Daimler Buses. “As is the case in all of the new growth markets, we are consistently applying our principle of operating as globally as possible on the one hand and as locally as necessary on the other.”

Once the new plant is finished in 2014, it will produce OM 457 diesel engines for the joint venture’s trucks that are produced under the Auman brand. The diesel engine is currently being used in Mercedes-Benz commercial vehicles in Europe and Latin America and is undergoing test runs in trucks made by the joint venture.

Up to 40% of the engine components will be produced in China when the new plant begins engine manufacturing operations and the localization rate is scheduled to be raised to more than 65% in the medium and long terms. BFDA said it is already working to select suppliers.

The new engine plant will cover an area of approximately 322,000 sq. ft. and is in close proximity to the Auman trucks production site. Once ramped up, it will add more than 500 new employees to the workforce. Production capacity at the plant will be designed for up to 45,000 engines per year.

As soon as the Chinese emissions standard China 4 (which corresponds to Euro 4) is introduced as planned next year, customers will be able to order the Auman truck with either a conventional engine or the OM 457, the company said. Until the new plant is completed, the Mercedes-Benz plant in Mannheim will deliver finished engines to China.

 

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