Toyota to expand in Malaysia with $488 million plant

The emblem of a Toyota car shines at Toyota Motor Corp.'s showroom Toyota Mega Web in Tokyo Friday, Aug. 2, 2013. (AP / Itsuo Inouye)

KUALA LUMPUR, Malaysia - Japanese automaker Toyota Motor Corp. says it will build a second factory in Malaysia as part of expansion to meet rising local demand.

The new 2 billion ringgit ($488 million) plant will be built by Toyota and its local partner, UMW Corp. Toyota said Wednesday that the plant, to be built in the central state of Selangor, will have an initial capacity of around 50,000 units a year.

Toyota said the plant is expected to begin operations in early 2019 and will help double the company's production volume in Malaysia to around 100,000 units a year.

It said the new plant will focus on manufacturing passenger cars, including energy-efficient vehicles, while its current factory will churn out commercial vehicles.