Daimler signs production deal with Chinese partner

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German auto giant Daimler on Friday said it had signed a deal worth one billion euros ($1.4 billion) with its Chinese partner to expand production at their joint Beijing-based venture.

The deal, signed with Beijing Automotive Industry Corporation (BAIC Group), during a visit to Germany by Chinese President Xi Jinping, will expand production capacity at Beijing Benz (BBAC) by 2015, it said in a statement.

The plant produces cars for the local market, including the Mercedes E- and C-Class models, and engines.

“Of the four billion euros currently being invested in BBAC, the one billion euros specified in the agreement signed today is to be used solely for the expansion of local car and engine production capacity until 2015,” the statement said.

Daimler said in November it had received the green light from China to acquire a 12-percent stake in BAIC Motor, a unit of Beijing Automotive Group.

The new investment deal was signed in Berlin in the presence of Chancellor Angela Merkel and Xi, who arrived in Germany earlier Friday on the third stop of a European tour.

Germany is China’s biggest trading partner in Europe, while China is Berlin’s biggest in Asia.

Among a raft of other pacts signed was a memorandum of understanding by German chemical and pharmaceuticals giant Bayer to enlarge a plant in Beijing and a cooperation accord between Volkswagen and its Chinese partner SAIC on fuel cell technology.

Engineering giant Siemens agreed a memorandum of understanding with Huaneng Power International and Shanghai Electric Group on cooperation in the field of energy.

Operator of the Frankfurt stock exchange, Deutsche Boerse, and Bank of China signed a preliminary agreement, while the Bundesbank and China’s central bank agreed a declaration of intent to set up a yuan clearing and settlement centre in Germany’s financial capital, Frankfurt.

The People’s Bank of China is due to sign a similar agreement in London next week.

The pacts signed were mostly declarations of intent or preliminary accords.

During his previous stop in France, Xi and French President Francois Hollande oversaw the signing of 50 deals worth 18 billion euros ($25 billion), including a Chinese order for 70 Airbus planes worth more than $10 billion.

 

 

 

 

Source : Channel News Asia | March 30, 2014

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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