Daimler's Mercedes-Benz Vans said it was spending US$150m to build the next generation Sprinter large van in Argentina.

Preparations for the production ramp-up at the plant in Argentina as well as other global Sprinter plants are already on-going and global production will start before the end of the decade. Mercedes-Benz Vans will add 500 jobs at the Argentine plant on top of the current 2,300.

Division chief Volker Mornhinweg said: "Argentina has been playing a key role for our international growth strategy 'Mercedes-Benz Vans goes global' and it will continue to do so in the future as well. With our investment we underline the importance of the market, our customers and our outstanding country team."

The plant Centro Industrial Juan Manuel Fangio in the town of González Catán near Buenos Aires was founded in 1951 and the first Mercedes-Benz production site outside of Germany.

Since 1996 it has produced about 290,000 Sprinters. Since 2015 it has also built the mid-size Vito. The plant also assembles bus chassis and trucks.