China's FAW Xiali to spend $130 mln on engine plant

SHANGHAI, Dec 11 (Reuters) - FAW Xiali Automobile Co (000927.SZ), a Chinese partner of Toyota Motor (7203.T), said on Tuesday it would invest 959 million yuan ($130 million) to build a new engine production line.

The line will be able to make 400,000 vehicle engines per year, FAW Xiali said in a statement.

The firm said in January it planned to invest 3 billion yuan from 2007 to 2010 to boost its vehicle and engine production capacity, and might raise money from the capital markets to help fund the expansion. ($1=7.395 Yuan) (Reporting by Fang Yan; Editing by Anne Marie Roantree)