DAIMLER AG said yesterday that its Mercedes-Benz unit will raise production of trucks, buses and their components at a plant in Brazil, investing 600 million euros (US$894 million) in the facility.

Daimler said the investment in the Sao Bernardo do Campo plant - to be made between 2009 and 2011 - would result in a 25-percent rise in daily capacity, as well as a modernization of production and an improvement in logistics systems.

The firm said in a statement that it expects jobs to be created in the expansion but did not specify how many. The facility employs 12,000 people.

Daimler said Sao Bernardo do Campo is running near full capacity - meaning that further sales growth could be done only by cutting production bottlenecks or boosting manufacturing operations.

The growth is aimed at meeting demand in Brazil and export markets.