Mazda Motor Corp. said Friday it will set up a production line for new types of engines with displacements of 2,000cc to 3,000cc at its Ujina plant in Hiroshima.
The new production line is set to start operations in 2001, the automaker said.
This is the company's first expansion of production facilities since 1992, when it launched its plant in Bofu, Yamaguchi Prefecture.
Friday's announcement comes as a positive sign for Mazda, which has long been undertaking drastic restructuring measures under the aegis of Ford Motor Corp.
As part of its restructuring efforts, Mazda integrated production lines at its Ujina plant in 1994.
For the business year that ended in March, Mazda posted 38.7 billion yen in consolidated net profits, returning to the black after a six-year leave.
"We're through, for now, with our drastic restructuring efforts," a senior Mazda official said, indicating the company is now ready to embark on a more aggressive strategy.
The new engines, to be produced at the Ujina plant, have been developed jointly with Ford as part of the two firms' ongoing program to standardize auto bodies and other parts.
Mazda said it plans to produce 1 million to 2 million engines per year for installation in sedans and multipurpose leisure vehicles.
The new engines will also be produced at Ford's plants in the U.S. and Europe, according to the company.