Toyota to build $527 mln plant in NE China by Aug

Shanghai, July 14 (Gasgoo.com)  FAW Toyota Motor, Toyota Motor's joint venture with China FAW Group Corporation, will spend about 3.6 billion yuan ($527 mln) in setting up a new SUV production plant in the northeastern Chinese city of Changchun, a senior FAW official told The Economic Observer published today.

Citing the company executive, the newspaper said Changchun has eventually beat Tianjin in securing the project. The new plant is expected to expand the automaker's production capacity in Changchun from the existing 10,000 units to 200,000 units by 2013. Construction of the plant is reported to start by August this year.

The Toyota Auris sedan and Wish minivan may be produced at the new production facility, but the source said they will only unveil their product plan at the ground-breaking ceremony for the plant.

Currently, FAW Toyota has only a small production plant in Changchun where Toyota hybrid Prius vehicles are produced. Annual capacity is 10,000 units. The JV automaker's three plants at Tianjin have a combined capacity of 420,000 units.

Toyota announced on July 5 that its joint venture plant in Sichuan will be relocated to another site within the province in the first half of 2010. The plant's annual output capacity will increase to 30,000 vehicles from the current 13,000 units.

Toyota's another Chinese venture, Guangzhou Toyota Motor, will also start to build its second production line in mid-2009, which will raise the company's annual output to 400,000 units eventually. The expansion aims to ease the supply pressure on Toyota's Camry model built there.