Suzuki has unveiled plans to construct an engine plant in Indonesia, which is set to be ready by March 2012, according to the Nikkei.

When operational, the facility – which is being built at its existing production base in West Java – will have a build capacity of 100,000 engines a year. It already makes 50,000 engines a year in Indonesia, but imports the rest from Japan to fulfill the demand from its local assembly operation, which produces the Swift, SX4 and APV minivan.

Local assembly output was 75,000 vehicles in fiscal 2010, but the Japanese automaker is set to increase its annual output to 100,000 units. The new plant will obviously help boost local procurement, lower production costs and improve efficiency. The total investment for the exercise will amount to 30 billion yen (RM1.13 billion)