Jul. 20, 2012 (China Knowledge) - Germany-based Daimler AG, the world's second-largest maker of luxury cars, and Beiqi Foton Motor Co Ltd<600166>, China's largest commercial vehicle producer, plans to set up a new truck engine plant in Beijing, said the German automaker yesterday.

With a total investment of RMB 1 billion or EUR 135 million, the plant will have an annual output capacity of no more than 45,000 engines and will begin operation in 2014.

The new plant will produce OM 457 model engines that will be used for its Auman-branded trucks manufactured by Daimler AG's Chinese JV, Beijing Foton Daimler Automotive Co Ltd.

In February 2012, Daimler AG and Beiqi Foton jointly funded Beijing Foton Daimler Automotive in Beijing with a registered capital of RMB 5.6 billion, China Knowledge reported earlier.