Toyota Motor Manufacturing North America said Friday it would spend $124 million to build a new engine castings factory under its American subsidiary, Bodine Aluminum Inc., in Jackson, Tenn.
Toyota said in a statement that the new plant would begin production in 2005, and would employ around 200 people to produce aluminium engine blocks.
A St. Louis-based aluminum casting firm that Toyota acquired in 1991, Bodine supplies the castings for Toyota's U.S. engine production. The subsidiary currently employs about 800 at two plants in Missouri.
In recent months, Toyota has revealed plans to add more vehicle production in North America, with two new truck plants-one in Baja, Mexico, and the other in San Antonio, Texas. The company is preparing to launch a new truck engine plant in Huntsville, Ala., yielding 120,000 V-8 engines an year.
But the automaker has not clarified yet where the engines for its increasing North American volume will come from.
The Jackson site was one of the final locations that Toyota considered earlier this year for an $800 million Tundra pickup factory. Toyota instead decided to locate that plant in San Antonio.