Pioneer Corp. said Wednesday it will open an automobile sound system plant in Manaus, northern Brazil, next March.
The audio and video equipment maker said it will invest 32 million real, or about 13.21 billion yen, in its first factory in the country.
The factory will initially employ 150 people, Pioneer said in a statement.
"This daring project targets the expansion of our local market share," the firm said.
The factory will be located in the heart of the Amazon rain forest region.
The Manaus Free Zone features a special tax policy that can be up to 40 percent more advantageous than in other Brazilian states.
The zone constitutes part of the Brazilian government's strategy of boosting economic development in the forest region.