Toy­ota plans UK plant up­grade

New Straits Times - - Business -

TOKYO: Toy­ota plans to up­grade its car­mak­ing plant in the United King­dom in a sign that con­cerns about Brexit won’t de­rail its in­vest­ments in the coun­try, for now.

The world’s sec­ond-big­gest car man­u­fac­turer will spend £240 mil­lion (RM1.3 bil­lion) to up­date equip­ment and tech­nol­ogy at a fac­tory in Bur­nas­ton to al­low the pro­duc­tion of mod­els on its lat­est plat­form, said Toy­ota on Thurs­day.

The UK govern­ment will sup­ply as much as £21.3 mil­lion of that for train­ing, re­search and de­vel­op­ment, sub­ject to due dili­gence, said the car­maker.

“We are fo­cused on se­cur­ing the global com­pet­i­tive­ness of our Euro­pean plants,” said Jo­han van Zyl, chief ex­ec­u­tive of­fi­cer of Toy­ota Mo­tor Europe. How­ever, he warned that “con­tin­ued tar­if­fand-bar­rier free mar­ket ac­cess be­tween the UK and Europe that is pre­dictable and un­com­pli­cated will be vi­tal for fu­ture suc­cess”.

Car­mak­ers are con­cerned that the UK’s exit from the Euro­pean Union may lead to costly trade bar­ri­ers,.

Toy­ota ri­val Nis­san Mo­tor Co has said it wants the govern­ment to spend £100 mil­lion to help build the coun­try’s sup­ply base and pledged to ex­pand pro­duc­tion at its Sun­der­land plant only after re­ceiv­ing as­sur­ances about Bri­tain’s poli­cies to­ward the in­dus­try. Bloomberg

BLOOMBERG PIC

Toy­ota will spend £240 mil­lion to up­date equip­ment and tech­nol­ogy at its Bur­nas­ton fac­tory in the United

King­dom.

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