TOKYO (Thomson Financial) - Japan's largest automaker, Toyota Motor Corp, is planning to build its fifth engine factory in the country in around 2010, the Nikkei reported over the weekend, without citing sources.
The company will build the plant in Miyagi Prefecture in northern Japan which will manufacture small-displacement engines for subcompact cars at a rate of some 200,000 units annually, the business daily said.
The investment is estimated at about 20-30 billion yen, it said.
The engine factory, which will be built near the town of Taiwa, where Toyota Motor Tohoku Corp makes brake parts and other car components, is expected to manufacture 1.5-liter-class engines to be used in subcompact sedans and other small vehicles, the report said.
The motors will be supplied to a Kanto Auto Works Ltd factory in Kanegasaki, Iwate Prefecture, as well as a car assembly plant that Central Motor Co aims to launch around 2010 in Ohira, Miyagi Prefecture, it said.
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