BEIJING – Beijing-Benz Automotive Co., Ltd. (BBAC) kicked off the construction of an auto parts and accessories industrial park here on January 30, according to a report on xinhuanet.com.
The industrial park will usher in numerous auto parts and accessories projects to supply products to BBAC, co-owned by Beijing Automotive Group and Daimler AG.
Contracts worth ¥4.9 billion ($766 million) involving the construction of 19 projects from global suppliers including ZF, Valeo, Johnson Controls, Lear and Magna were signed at the Beijing Yizhuang Economic and Technological Development Zone.
Sources with the economic zone said output of BBAC and its industrial chain is expected to reach ¥50 billion by the end of 2015. The area is expected to eventually form an automotive cluster with industrial output value of ¥100 billion. Last July, Daimler’s first overseas engine manufacturing plant covering 12 square kilometers broke ground here.
Established in 2005, BBAC now assembles and manufactures the Mercedes-Benz C- and E-Class cars as well as the GLK compact SUVs.