Toyota Motor announced plans for a new engine assembly plant in the Karawang industrial estate some 70km (40 miles) east of Indonesia’s capital city Jakarta.

Its local subsidiary, Toyota Motor Manufacturing Indonesia, has acquired a 150 hectare site near its existing car plant and plans to start production by 2016, according to a company official.

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The facility is expected to cost around US$200m to complete and will have a production capacity of over 210,000 units per year. It is expected to make engines for the growing range of small Toyota cars made in Indonesia as well as for export.

The official also said the company plans to begin production of the Yaris [Vitz] in Indonesia later this year.

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