Dec 5 (Reuters) - Toyota Motor Corp (7203.T), the world’s biggest automaker, will resume construction on plants in the United States and China to meet growing Chinese demand and to reduce the impact of the yen’s strength, the Nikkei business daily reported.
These plants are expected to kick off production in the year through March 31, 2011, boosting the firm’s annual output capacity by 200,000 units, the paper said without citing sources.
The automaker is expected to invest an additional 100 billion yen ($1.14 billion) to complete work on the plants, the daily added.
Toyota, whose biggest market is the United States, will resume construction on a plant in Mississippi, the Nikkei added.
Toyota plans to suspend some production lines in Japan and the UK to reduce capacity by 1 million units as early as the year through March 31, Nikkei reported.
However, it aims to bolster investment in establishing operations less sensitive to foreign exchange fluctuations, as well as in cultivating growth markets, the daily said.
It now plans to use the Mississippi plant to manufacture about 100,000 Corolla passenger cars a year and eventually the Prius, the daily said.
In China, Toyota will lift its suspension of the construction of a joint venture plant with China FAW Group Corp, the paper added. ($1=88.11 Yen) (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Gopakumar Warrier) ((firstname.lastname@example.org; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: email@example.com))