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Industrial Park
Beijing E-Town secures RMB 2.82 bln invt from Beijing Benz Auto amid carmaker's restructuring initiative
CKN
2018/07/25 01:19:35
3,427
BBAC, BAIC

Jul 25, 2018 (China Knowledge) - According to Beijing Municipal Development and Reform Commission, Beijing Benz Automotive Co., Ltd. (BBAC) has further committed an investment of RMB 2.82 billion in Beijing E-Town that could enhance the triple-A rated industrial park's auto industry. Founded in 2005, Beijing Benz is a subsidiary of BAIC Group, a joint venture invested by Beijing Automotive Co., Ltd and Daimler AG, Daimler Greater China Investment Co., Ltd.

The 3 projects are part of BBAC's strategic restructuring initiative which requires a total investment of around RMB 11.94 billion. Specifically, these are for production site upgrade, Mercedes-Benz C-Class sedan upgrade project and M254 engine technical transformation.

Under the restructuring initiative, BBAC will leverage traditional production capacity of Beijing branch of BAIC Co., Ltd. to transform and upgrade to Beijing Benz high-end new energy vehicle production site. Phase one of the project is scheduled to commence by the end of 2019 with an annual production capacity of 150,000 units. The annual output value is expected to reach RMB 50 billion.

Reportedly, the project will be equipped with the world's most advanced new energy production process including automatic lines of servo press, 1,400 KUKA robots, 3D laser scanner welding, Best Fit intelligent connection and other new hi-tech applications. The factory's automation rate could reach 90%; and, at the same time one module-based, electric architecture platform independently developed by Beijing Benz will be rolled out to launch new electric high-end models of Mercedes-Benz.

In addition, two other projects of Beijing Mercedes-Benz C-Class sedan upgrading and M254 engine technical transformation will also be based in Beijing E-town. The former project will carry out technical transformation of the existing production line to manufacture a new generation of Mercedes-Benz C-Class sedan, with an estimated annual production of 130,000 units and a total investment of approximately RMB 3.22 billion. The latter project will use the existing capacity to transform the M270 and M276 engines and plans to produce 280,000 four-cylinder M254 gasoline engines with a total investment of about RMB 2.09 billion.

Beijing E-Town's auto industry has entered the fast track. As of to date, the triple-A rated industrial park’s value chain includes auto parts and components, automotive electronics and automobile servicing with prospective output value of RMB 100 billion.

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