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Valmet, Daimler To Make Mercedes-Benz Cars

They will produce more than 100,000 of the German automaker's latest Mercedes-Benz model, the A-class, to satisfy high demand ahead of the launch.

HELSINKI (AP) — Independent Finnish car manufacturer Valmet Automotive says it has struck a deal with Daimler AG to produce more than 100,000 of the German automaker's latest Mercedes-Benz model, the A-class, to satisfy high demand ahead of the launch.

The value of the agreement was not disclosed, but Valmet spokeswoman Teija Ahlman described it Tuesday as "significant."

Under the deal, Valmet will manufacture the cars at its Uusikaupunki plant in northwestern Finland between 2013 and 2016.

Daimler began building the new A-class model, a small family car, at its Rastatt plant in Germany in July. Due to the popularity of the model, the automaker says it needs help to build more. Some 40,000 orders have already been placed for the cars that are due for launch in September.

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