Tokyo - Toyota Motor Corp said Wednesday that it will spend 23 billion yen (7.1 billion baht) to build a new engine plant in Indonesia.
The Japanese carmaker expects the factory to begin production in the first half of 2016, with an annual maximum capacity of 216,000 engines for passenger cars, the company said in a statement.
Toyota also plans to hire about 400 workers at the factory near its existing plants in Karawang, about 50 kilometres east of Jakarta, it said.
Toyota already operates two plants in Karawang and two more just north of the capital.
Over the past decade, many Japanese carmakers have established manufacturing bases in Southeast Asia, especially Thailand and Indonesia, to take advantage of low production costs and local tax benefits.