Daimler AG and Beijing Automotive Group Co. Ltd., or BAIC, are planning to invest nearly $1.9 billion in a modern Chinese factory to produce Mercedes-Benz vehicles, Reuters reported Feb. 25.

The two companies are seeking to upgrade and modernize a plant in China for Mercedes-Benz cars and electric vehicles, according to the Reuters report, citing a filing BAIC made with the Hong Kong Stock Exchange on Feb. 23 that was later confirmed by Daimler on Feb. 25.

The move by Daimler and its Chinese partner BAIC comes as Chinese automotive manufacturer Zhejiang Geely Holding Group Co. Ltd. said it had acquired a stake worth €7.3 billion in Daimler, Bloomberg reported Feb. 23.