Tianjin FAW-Toyota gets approval for $537 mln new investment

Shanghai, May 28 (Gasgoo.com) Tianjin FAW-Toyota Motor Co., Ltd. announced that it has recently obtained approval from the Ministry of Commerce to invest US$537 million in its third manufacturing plant in Tianjin, according to an Asia Pulse report.

The report said new investment will be used for the production of an unnamed SUV at the plant in mid-2009. Designed production capacity for the model is 40,000 units at full operation.

Currently FAW Toyota Co operates three plants in Tianjin: Plant No.1 (120,000 units per year) builds Corolla and Vios, a sedan variant of the previous-generation of Yaris, and Plant No. 2 (150,000units/year) builds the Crown and Reiz upscale sedans. The third plant (200,000units/year) builds the tenth generation Corolla only.

Just two weeks ago Toyota unveiled plans to invest $214.6 million to boost production capacity of its second Tianjin plant by 50 percent to 150,000 vehicles a year. The expansion is also due to be completed by the end of 2009.

The move would boost the annual capacity of FAW Toyota to 470,000 units from 420,000 units, and Toyota's overall capacity in China to roughly 690,000 units.