A Toyota subsidiary is building a new car assembly plant in northern Japan, according to an AP report.

The report said that the move is aimed at making production more efficient.

Central Motor Co., a Toyota Motor Corp. group subsidiary, said the plant in Miyagi Prefecture will be completed by 2010, with a planned annual production capacity of 120,000 vehicles. Other details, including the cash investment and models to be produced, are still undecided, said Central Motor spokesman Makoto Moriya.

The new plant will eventually replace Central Motor's Kanagawa Prefecture factory, which makes various Toyota cars, including the Yaris for US export and the Corolla, with an output of some 120,000 vehicles a year, Moriya said.

All 1,300 workers at the Kanagawa plant will be moved with company help to the new facility, although details aren't decided, he said.

Toyota welcomed Central Motor's announcement, and said in a statement the new plant was an answer to changing conditions and will make production more efficient and contribute to quality Toyota cars, AP reported.