Nissan to build engines in Indonesia

TOKYO: Nissan Motor has revealed that it is to start joint- production of petrol engines in Indonesia starting in 2000.

The joint-venture partner is a major financial conglomerate in Indonesia, and is now involved in the joint-financing with Nissan of an auto assembly plant that has been operational in that country since last October.

The engine factory is to have a capacity of about 10,000 per month, and ground breaking is projected to take place next year.

Initially, the factory is to supply 1,500cc engines for the compact car passenger model called Sunny, which is manufactured in Indonesia and Thailand, among other locations.

Of Nissan's manufacturing centers in Southeast Asia, its car parts production system in Indonesia is the least developed, which prompted the company to decide on the joint venture.