World auto giant DaimlerChrysler signed here an agreement over the weekend to form a joint venture with Fujian Motor Industry Corp. on the Chinese mainland and ChinaMotor Corp. from Taiwan to produce Mercedes-Benz van, an official said Monday.

The three companies will invest 235 million US dollars into thejoint venture, to be located in Fuzhou, capital of Fujian Province.

Under the agreement, the Fujian auto firm will control a 50 percent stake of the joint venture, and the rest will be held by DaimlerChrysler and China Motor.

With an annual capacity of 40,000 units, the venture will beginproducing Mercedes-Benz Sprinter, Vito and Viano vans in small numbers within this year, said the official of the Fujian Provincial Economic and Trade Commission.

The Fujian auto firm and China Motor has been running a joint venture in Fuzhou since 1995, producing minivans and Lioncel compact sedans, a model which is based on the Lancer of MitsubishiMotor. The Japanese car maker controls a 25 percent stake of ChinaMotor.