Nissan plans to build a new US$60m engine plant in Brazil’s Rio de Janeiro state, according to chief executive officer Carlos Ghosn.

The new facility will be built adjacent to Renault-Nissan’s newly built vehicle assembly plant in Resende, some 140km west of Rio de Janeiro. It will have capacity to make 200,000 1.6 litre flexfuel engines per year with production expected to start in mid-2014.

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Nissan said it plans to increase its share of the Brazilian vehicle market from just over 2% at present to over 5% by 2016.

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