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 senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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