Toyota builds new engine plant in Indonesia

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toyota engine plantToyota Motor Corp said on July 24 that it will spend $240 million to build a new engine plant in Indonesia near the capital Jakarta.

The Japanese car maker said the factory will begin production in the first half of 2016, with an annual maximum capacity of 216,000 engines for passenger cars, according to a company statement. The site will employ about 400 workers near its existing plants in Karawang, about 50 kilometers east of Jakarta. Toyota already operates two plants in Karawang and two more just north of the capital.

The plant will be operated by Toyota’s Indonesian subsidiary Toyota Motor Manufacturing Indonesia. The engines are meant for export to other ASEAN countries, as well as to Latin America and Africa. Engines produced at the new plant will also be exported, Toyota said.

The engines will be used for Toyota’s vehicle series comprising the Hilux pickup trucks series, the Innova minivan and the SUV model Fortuner.

Toyota Motor Manufacturing Indonesia is owned by Toyota Motor Corporation (95 per cent) and Indonesian conglomerate PT Astra International (5 per cent) and has around 7,300 employees as of June 2013.

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.

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Reading Time: 1 minute

Toyota Motor Corp said on July 24 that it will spend $240 million to build a new engine plant in Indonesia near the capital Jakarta.

Reading Time: 1 minute

toyota engine plantToyota Motor Corp said on July 24 that it will spend $240 million to build a new engine plant in Indonesia near the capital Jakarta.

The Japanese car maker said the factory will begin production in the first half of 2016, with an annual maximum capacity of 216,000 engines for passenger cars, according to a company statement. The site will employ about 400 workers near its existing plants in Karawang, about 50 kilometers east of Jakarta. Toyota already operates two plants in Karawang and two more just north of the capital.

The plant will be operated by Toyota’s Indonesian subsidiary Toyota Motor Manufacturing Indonesia. The engines are meant for export to other ASEAN countries, as well as to Latin America and Africa. Engines produced at the new plant will also be exported, Toyota said.

The engines will be used for Toyota’s vehicle series comprising the Hilux pickup trucks series, the Innova minivan and the SUV model Fortuner.

Toyota Motor Manufacturing Indonesia is owned by Toyota Motor Corporation (95 per cent) and Indonesian conglomerate PT Astra International (5 per cent) and has around 7,300 employees as of June 2013.

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.

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