Daimler’s Mercedes-Benz has opened its first passenger car engine plant outside of Germany in China at Beijing Benz Automotive in Beijing.

The EUR400m plant will make four and six-cylinder engines to power both passenger cars produced at BBAC and vans produced locally at the joint venture Fujian Benz Automotive. Initial capacity is 250,000 units.

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“We are now building the heart of our Mercedes-Benz cars also here in Beijing, underlining our integrated and strong localisation strategy,” said BBAC chief Frank Deiss.

BBAC builds the long-wheelbase E-Class, C-Class and GLK-Class. Around 100,000 were produced at BBAC in 2012 but capacity is being increased to 200,000 units by 2015 and GLA-Class output is planned.

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