Mercedes-Benz’s Brazilian commercial vehicle unit is hiring 800 new employees to work in truck and bus production at its Sao Paulo plant.

The firm has also said that the current 350 temporary employees will become regular contract employees during October.

The new hires are in response to growing signs of recovery in Brazil’s commercial vehicle market  driven by a perkier Brazilian economy.

“The hiring of new staff makes clear that we trust the Brazilian economy will see a slight upturn after the global economic crisis,” Mercedes-Benz do Brasil President Gero Herrmann said in a statement released in Germany.

Reuters reports that Daimler has also reversed a decision to close a US truck plant next year thanks to a large US military order and an uptick in demand for heavy trucks.

Daimler had announced plans to close the Oregon plant in June 2010 as part of an overhaul of its North American operations to address a deep market slump, Reuters noted.