Toyota today confirmed plans to build a diesel engine plant in southwest Poland to supply two-litre motors for its cars made in the UK and Turkey.

Toyota Motor Industries Poland Sp.zo.o. (TMIP) will be formally established by the end of October, with production scheduled to start at the beginning of 2005.

The plant will be located about 15 miles south-east of Poland’s fourth-largest city of Wroclaw and will have an annual production capacity of 120,000 units.

Diesel engines made there will be fitted to Corollas built in the UK and Turkey and the UK-built Avensis which is about to be redesigned for the 2003 model year.

Toyota will invest 170 million euros (about 20 billion yen) in the plant which is expected to employ 350.

Toyota Motor Manufacturing Poland Sp.zo.o. started manual transmission production last April and will also build petrol engines and manual transmissions from the end of 2004 for the cars to be built at the Toyota Peugeot Citroën Automobile Czech (TPCA) joint venture in the Czech Republic from 2005.