Toyota to deliver green engines

Toyota will build a $300m engine plant that the company says will deliver reduced carbon emissions.

AAP

A NEW $300 million Toyota plant in Melbourne will produce engines that deliver reduced carbon emissions, the car giant says.

The plant will include the production of hybrid engines and four-cylinder new generation engines.

The engine plant at Altona, in Melbourne's west, is being backed by $63 million in federal government funding along with Victorian government funding.

More than 100,000 engines will be produced each year at the plant, scheduled to begin in the second half of 2012.

Toyota says the more environmentally sustainable engine will deliver reduced carbon emissions and improved fuel consumption.

Toyota Australia chief executive Mr Max Yasuda said the investment was a "huge vote of confidence" for the manufacturing plant and its employees.

He said support provided by the federal government's Green Car Innovation Fund and the Victorian government were major factors in the project proceeding.

"A partnership between local carmakers, the government and suppliers is fundamental for ensuring we evolve our industry to deal with the challenges of a carbon constrained world."

Australian Manufacturing Workers Union (AMWU) national divisional secretary Ian Jones said it was a massive vote of confidence in the Australian automotive industry and the federal government's Green Car Plan.

"The workers at Toyota will anchor the transformation of the Australian automotive industry into a world leader in low carbon manufacturing," he said.

"The Green Car Fund is a suite of quality settings that provide certainty for investment. That certainty provides jobs, that certainty allows us to tackle climate change and create the jobs of the future".

Federal Industry Minister Kim Carr said the investment would secure up to 30,000 direct and indirect jobs.

"It's yet another reminder that the industry is here to stay," he said.

Premier John Brumby said the state government had also made a significant investment in the project but would not reveal the exact figure.

However, he said it was less than the federal government's $63 million contribution.

"There are not many places around the world at the moment where companies are going out and making investments of more than $300 million ... securing the future of jobs and securing the future of manufacturing," he said.