German automotive giant Daimler AG has reportedly announced that it intends to construct a new R&D Tech Center in China with a total investment of more than 1.1 billion RMB. Following the Mercedes-Benz R&D Center set up in 2014, the new facility would be the company’s second prominent R&D site in Beijing.

Member of the Board of Management at Daimler AG, Hubertus Troska was reportedly quoted stating that the company declared earlier this year to go ahead with the expansion of its second manufacturing facility in Beijing along with BAIC Group. The expansion is in line with Daimler’s strategy to prepare for the future products of Mercedes-Benz which includes battery-electric vehicles and remain positive for further growth opportunities in the company’s largest market – China, Troska further added.

Reportedly, the new R&D Tech facility would enable the firm to speed up the localization of the latest products of Mercedes-Benz in China. Built on the site of the local manufacturing hub Beijing Benz Automotive Company, the facility would commence operations by 2020.

Head of Mercedes-Benz Research & Development China, Professor Dr. Hans Georg Engel reportedly commented that the China team of Daimler has continuously expanded the R&D activities for more than a decade now and driven R&D activities in areas such as electric driving, automated driving, and connectivity. The new R&D facility would ensure successful research activities with sufficient, efficient, and reliable resources that would enable the company to better adapt to market-specific demands, Engel further elaborated.

Sources familiar with the development claim that proximity to the manufacturing hub would allow the R&D Tech Center to integrate campus concept of local production via the existing pilot facility along with new workshops and test labs. The facility would reportedly test new powertrain and chassis, energy vehicle technology, in-vehicle air quality.