TMUK Announces Major Expansion

Tokyo―TOYOTA MOTOR CORPORATION (TMC) announced today that its U.K. manufacturing arm, Toyota Motor Manufacturing (UK) Ltd. (TMUK), will invest about £200 million (about ¥30 billion) to expand manufacturing operations and raise production to around 200,000 cars per year.

This level will be reached by adding the production of vehicles from the Toyota Corolla series from autumn 1998, together with the Carina E now being manufactured at TMUK's Burnaston Plant.

The new assembly plant will be built alongside the existing one and the remaining capital investment will be spent on additional presses, plastic molding machines, and other equipment. The additional production capacity will be about 100,000 units per year.

"Toyota UK has made a very successful start thanks to the hard work and commitment of its U.K. members and European suppliers. The fact that we are about to expand is an endorsement of the quality of these people and of the products they produce," said Yukihisa Hirano, managing director of TMUK.

In 1989, Toyota announced its original plans for production at TMUK. From that time, the plans included two phases, the second depending on market demand.

TMUK will continue its localization policy of using European suppliers. The local content ratio target will therefore remain at 80%.

The Deeside Engine Plant is also likely to benefit from the increased investment because some of the engines for the new model will be sourced there. The Deeside Plant currently supplies 1.6- and 1.8-liter engines to the Burnaston Plant for the Carina E, 1.6-liter engines to Toyotasa, a Toyota joint venture in Turkey, and crankshafts and cylinder blocks to Toyota in Japan.

Approximately 75% of the Carina Es produced at TMUK are currently exported to 16 European countries.

TMUK presently produces Carina E sedans and lift backs, with 1.6-, 1.8-, and 2.0-liter engines. The station wagon will be added to the production lineup in May. Production for 1995 is projected to be around 90,000 units. TMUK currently employs some 1,900 people, including 140 at its Deeside Engine Plant.