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JP / CN - Toyota to build new plant in Tianjin

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Japanese auto giant Toyota plans to build a new plant in Tianjin, China reports The Japan Timesciting sources close to the matter.

The revelation follows reports last week that the world’s largest automaker plans to invest a combined $US1.3 billion ($A1.72 billion) to build new plants in Guangzhou, China as well as Mexico.

The new venture would be the company’s first major investment in five years. Toyota announced a freeze on plant construction in fiscal year 2013.

According to The Japan Times,  the new plant in Tianjin will start operation in 2018 or 2019 with capacity to produce 100,000 cars a year.

The Tianjin plant will likely produce fuel-efficient passenger vehicles under a local brand through a joint-venture with a Chinese firm.

The Chinese government is pushing the development of the new energy car market and hopes to produce half a million of the cars cars by the end of 2015.

The world's largest car maker expects to spend about Y150 billion ($A1.65 billion) on the new facilities, opening them in 2018 in China and 2019 in Mexico, the Nikkei business daily said last week.

Toyota kept its title as the world's biggest automaker in 2014 as it announced record sales of 10.23 million vehicles, outpacing General Motors and Volkswagen.

Source: perthnow.com.au

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