Toyota to Build $600M Manufacturing Plant in Brazil
- Jul 20, 2010
July 20, 2010
By Barbra Murray, Contributing Editor
Two years ago this month, Tokyo, Japan-headquartered Toyota Motor Corp. acquired a 914-acre parcel of land in the town of Sorocaba in Brazil , and now the automobile company is ready to erect a new plant on the site. Toyota will build the $600 million manufacturing facility for its Brazilian sales and manufacturing division, Toyota do Brasil Ltda. (TDB).
The factors that compelled Toyota to acquire the Sorocaba site for TDB’s new manufacturing center include the prime location and the desirable infrastructure. The facility will be TDB’s third. The other two are located in São Bernardo and Indaiatuba, where the company manufactures automobile parts and the Corolla model vehicle, respectively. A newly developed compact vehicle for local distribution and for export will be manufactured at the Sorocaba plant, which will sit 25 miles southwest of the 12-year-old Indaiatuba facility.
Construction of the Sorocaba plant is on track to commence in September of this year, with an estimated completion during second half of 2012. There could be more development on for TDB in the not-too-distant future, as Toyota plans to expand in conjunction with market growth in Brazil, as well as in other emerging markets.
The U.S. is also on Toyota’s development roster. The company announced in June that it would resume construction of a $1.3 billion plant on 1,700 acres in Blue Springs, Mississippi (pictured), where it will assemble the Corolla compact sedan–and create 2,000 new jobs. Toyota decided to halt construction of the facility in late 2008 as the economic crisis began to take hold. “We first needed to fully utilize our existing facilities as the economy slowed,” Yoshimi Inaba, president and chief operating officer of Toyota Motor North America, noted in a prepared statement last month. “Now it’s time to fulfill Toyota’s promise in Mississippi.”
The Mississippi plant will open its doors for operation in the fall of 2011.