Visiting German Chancellor Gerhard Schroeder laid the plant cornerstone for a new Mercedes-Benz production plant in Beijing on December 6.

Located in southeast Beijing's Beijing Development Area, this plant was established as part of Beijing Benz-DaimlerChrysler Automotive Corporation, a new joint venture of DaimlerChrysler and Beijing Automotive Industry Holding Company.

DaimlerChrysler and BAIC each have a 50 percent stake in the new 30-year joint venture, which will be responsible for local production of Mercedes-Benz E- and C- Class sedans at the new plant beginning from mid-2005.

Schroeder came here for a three-day working visit to China as guest of Chinese Premier Wen Jiabao. His entourage includes 44 businessmen from established German companies in fields of finance, electronics, machinery and aviation.

Noting the automobile industry is an engine of China's booming economy, Schroeder said that DaimlerChrysler's increased investment here will create a win-win situation, benefiting both Germany and China.

"DaimlerChrysler's move will surely lure more German small- and medium-size companies to do business in China," Schroeder said.

Schroeder will also pay a visit to the northeast China's Changchun city, an old industrial base.

Source: Xinhua