SEOUL -- South Korean sport utility vehicle maker Ssangyong Motor Co. said on Tuesday it would invest 199.6 billion won ($168.4 million) to build a new engine plant in the southern part of the country.
Ssangyong, one of the nation's smallest automakers which creditors rescued from collapse last year, posted record sales in the first half of this year because of government tax cuts on car purchases and strong demand for its Rexton and Korando SUV models.
The automaker said in a public notice to the Korean Stock Exchange it would raise the funds from its own reserves and the plant would be able to produce 200,000 engines annually.
Ssangyong said construction would begin in October this year with completion slated for September 2004.
The automaker's first half sales rose 27.1 percent year-on-year to 82,534 vehicles.
U.S.-German automaker DaimlerChrysler AG holds a 1.2 percent stake in Ssangyong, which made an ill-timed foray into luxury sedans shortly before the Asian financial crisis in late 1997.