FRANKFURT, Germany -
Daimler AG said Tuesday that its Mercedes-Benz unit will increase production of trucks, buses and their components at a plant in Brazil, investing euro600 million (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 increase in daily capacity, as well as a modernization of production and an improvement in logistics systems.

The company 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 achieved only by eliminating production bottlenecks or expanding manufacturing operations.

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

Mercedes-Benz do Brazil is Latin America's largest manufacturer of commercial vehicles. From January through July, the unit sold nearly 23,000 trucks and buses.

Shares of Daimler were down 0.4 percent at euro42.63 (US$63.52) in Frankfurt trading.