Asian Tech Press -- Chinese auto manufacturer Great Wall Motor (GWM) announced that the company formally signed an agreement with Daimler AG's Mercedes-Benz on Wednesday for the acquisition of Daimler plant in Brazil.

According to the agreement, Daimler's Iracemápolis plant in Brazil, including land, buildings, machines and equipment, will be transferred to GWM. The deal is purely an asset transaction and does not involve the transfer of personnel.

It is reported that the Iracemápolis plant was put into operation in 2016, mainly producing the Mercedes-Benz C-Class and GLA models.

At the end of last year, Mercedes-Benz closed the plant due to its shift to electric vehicles and the impact of COVID-19. After closing the plant, the German automaker will continue to retain the channel and dealer network for selling imported cars in Brazil.

Meng Xiangjun, president of GWM, said that the deal will accelerate the development and strategic implementation of Great Wall Motor in the South American market and further promote the transformation of the company into a global technology and mobility company.

The plant delivery is expected to be completed by the end of 2021, and the plant will have an annual production capacity of 100,000 vehicles through the renovation, creating nearly 2,000 local jobs, the agreement mentioned.