After numerous postponements, Toyota‘s Brazilian subsidiary has started construction of its second plant here.

Located in Sorocaba, 60 miles from São Paulo City, it will have initial capacity of 150,000 units a year but there is room on the 4.425 sq m site to enlarge capacity to 400,000 units.

The plant is scheduled to start producing a new compact car in 2011.

Toyota did not officially announcement the start of construction nor reveal the amount it is investing but the federal government estimate is $800m.

Fernando Calmon

New Toyota plant will go ahead