Report Says Toyota to Invest in New Engine Plant in Japan

TOKYO, Oct 25, 2004; Reuters reported that Toyota Motor Corp. will invest more than $186 mllion a new engine plant, its first in Japan since 1986, the Nihon Keizai newspaper reported on Monday.

The paper said the world's second-largest car maker would construct the plant in Fukuoka prefecture, southern Japan. It would be the firm's fifth engine plant in Japan and the first outside Aichi prefecture, where Toyota is headquartered.

Toyota officials were not immediately available for comment.

The plant will have an annual production capacity of 200,000 units and start operations in 2006, the paper added.

The plant will make engines for Lexus sport utility vehicles and others to be installed in vehicles manufactured by Toyota's subsidiary in Fukuoka, and Toyota aims to cut distribution costs by making engines nearby, the paper said.

The paper added Toyota was likely to create a second production base in Fukuoka for the luxury Lexus brand, to be introduced in Japan next summer, as it was becoming hard to find new workers in Aichi, where the car maker already has 12 plants.