Toyota breaks ground for new engine plant in Indonesia

Toyota Motor Manufacturing Indonesia held the ground breaking ceremony to mark opening of a second engine plant in Karawang, West Java. This new plant is coming up at an investment of Rp 2.3 trillion ($197.8 million or Rs 1227 crores) and will be used to produce engines for new passenger cars.

The upcoming Toyota engine plant is spread over an area of 150 hectares, with 20 hectares being developed in first phase. This new plant will be second engine plant of Toyota Motors after Sunter Plant in North Jakarta. Production at the new plant is set to boost capacity two fold once fully operational with about 50% of production for domestic markets and the balance channelized for exports to countries such as Asia, Africa and S America, reveals The Jakarta Post.

Toyota breaks ground for new engine plant in IndonesiaOperations on the new plant are slated to commence in 2016 and will be capable to produce 216,000 engines per year. This new plant along with first facility in Sunter will ensure more than double output. The Sunter plant, which first started producing engines in 1982, currently produces engines for Toyota’s multipurpose vehicles for international markets which include Hilux pickup truck, Innova minivan and Fortuner SUV.

Toyota operates from Karawang plants I and II from where the Kijang Innova, Fortuner and Etios Valco hatchbacks are produced and Sunter Plants I and II where engines are produced along with other processes such as stamping and iron casting. The new plant is expected to provide 600 new jobs during its initial stage.