Renault plans to invest about 200 billion won ($US191 million) to build an engine plant in South Korea, Reuters reported, citing online news agency edaily.

The plant, to be built in the South Korean port city of Pusan, reportedly will produce two-litre petrol and diesel engines and have a capacity of 200,000 to 300,000 units a year, the report said.

Part of the engines from the plant will be exported for use by Renault and Nissan Motor, edaily said.

A Renault Samsung Motors spokesman declined to confirm the report to Reuters but said details would be revealed at a news conference on Tuesday.

The news agency noted that Renault Samsung is set to unveil its new passenger car model, SM7 at the conference. The company, acquired by Renault in 2000, has built small-and medium-sized cars based on Nissan models.

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