A Mercedes-Benz Viano transporter last week rolled off the production line of Fujian Daimler Automotive Co., Daimler AG's newly established joint venture in east China's Fujian province.

With an investment of 2.5 billion yuan ($366 million), Fujian Daimler is a joint venture between Daimler, Fujian Motor Industry Group Co. and Taiwan-based China Motor Corp. The company initially aims to build Mercedes-Benz branded commercial vans. 

Besides the Viano, Fujian Daimler will make the Vito and Sprinter models, according to information Automotive News China obtained from Fujian Motor.

The existing manufacturing facility includes body, paint and assembly areas, totaling 128,000 square meters. It will be able to produce up to 40,000 vehicles annually, but will be flexible enough to adjust volume and model mix based on demand, says Daimler in a statement.

At present, every locally-produced vehicle at the facility has more than 40 percent of its parts and components sourced from China-based suppliers, according to Daimler.

In addition to Fujian Daimler, Daimler has a joint venture in Beijing with Beijing Automotive Industry Holding Co. (BAIC), known as Beijing Benz Automotive Co. Beijing Benz now builds Mercedes-Benz C- and E-Class sedans. 

Daimler is also in the process of establishing a joint venture with Beijing-based Beiqi Foton Motor Co. to produce medium and heavy-duty trucks in China.