Japanese car giant Toyota has chosen its North Wales engine plant for a £150m expansion which will create 310 jobs.

The company's factory at Deeside, Flintshire, will be extended to build engines for the company's recently-announced small car plant in northern France.

Toyota president Hiroshi Okuda unveiled the spending plan jointly with British Prime Minister Tony Blair, who arrived in Tokyo on Friday for a four-day visit to Japan.

Tony Blair thanks President Okuda (Dur: 40")

Speaking as the announcement was made, Mr Blair said: "It shows yet again the continuing confidence people have in the UK economy and in the fundamentals of it, and obviously we are delighted yet again there is a further commitment not just by this company but by Japanese business.

"Inward investment is vital to the British economy.

Capacity will be doubled

"The Government has worked hard to explain the benefit of investing in Britain and we are delighted, and proud, that Toyota has chosen to invest further in the UK.

"This significant expansion brings Toyota's total UK inward investment to almost £1.5bn and underlines the UK's attraction to global companies."

Mr Okuda was asked why the firm was going ahead with an investment in Britain when Britain was not preparing to enter the single currency on its launch in 1999.

He replied: "The EMU (Economic and Monetary Union) related issue has nothing to do with our decision in this investment."

The new investment will virtually double the Welsh factory's maximum annual production capacity to 400,000 engines.

Deeside had been widely tipped as the favoured site for the project although Toyota refused to confirm its decision until today.

Delicate negotiations between the Japanese and the Welsh Development Agency lasted some 12 months before a deal was secured.

Toyota's £140m Deeside factory began production in 1992 and supplies 1.6 and 1.8-litre engines to the company's Burnaston plant in Derbyshire and to another plant in Turkey.

Late last year the company announced a £60m investment in Deeside to expand engine output for Corolla cars which will be built at Burnaston from late 1998.

Royan Anthony, Manging Director of Toyota Deeside, expresses his delight (Dur: 14")

That expansion together with the latest project will mean a total workforce at Deeside of about 600 over the next few years.

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