Toyota Motor Corp. said Tuesday it will build its fifth domestic engine factory to meet rising demand for compact cars.
The company will spend ¥50 billion to build the plant in Miyagi Prefecture, Toyota said. The factory, which will start production in 2010, will build 200,000 units in its first year, with capacity eventually rising to 400,000 engines a year.
Toyota is making northern Japan its third domestic production hub. The company has three engine plants in Aichi Prefecture, where it is based, and operates a fourth engine factory in Kyushu.
The new plant will be built next to an existing Toyota factory that makes brake parts and other components. It will employ about 500 people, the company said.
Toyota's Kanto Auto Works Ltd. operates a factory in Iwate Prefecture where it assembles compact models, including the Auris and Scion xB.
Affiliate Central Motor Co. said in October it plans to open a new plant in Miyagi in 2010 to replace an aging facility. Models it builds include the Yaris compact.