TOYOTA has announced £2.5 million expansion plans for its engine plants in Wales for the assembly of 1.3 litre engines to go into a new British-built Corolla from 1998.

Production of the existing 1.6 litre engine will also increase for the Corolla. The expansion will create 40 new jobs and follows the company's decision to expand production in Britain with a £200 million investment at the car manufacturing plant in Burnaston, Derbyshire.

The Deeside engine plant currently employs about 180 people manufacturing the conventional 1.6 litre engine and the 1.8 lean burn engine for the Carina E. The plant will produce 110,000 engines this year.