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Nissan To Build New Engine Facility at Iwaki Plant

Plant's total annual production capacity to rise to 560,000 units

Tokyo -- Nissan Motor Co., Ltd., announced today that it would start construction of a second engine facility at its Iwaki Plant in Fukushima Prefecture to meet rising demand for the VQ V6 engine. The new facility, which is expected to start operations in the summer of 2006, would boost the plant's total annual production capacity to 560,000 units from its current 396,000 units.

 "The Iwaki Plant expansion program will enable us to boost production of the world-renowned VQ V6 engines and also respond quickly to customer demand,"  said Tadao Takahashi, Nissan's executive vice president in charge of manufacturing.

Construction of the new engine facility will begin in January 2005. The new facility, which represents an investment of 10 billion yen, will have a floor space of 13,500 square meters and will be constructed next to the plant's casting shop. New engine parts processing lines will also be installed. The expansion will result in the creation of about 20 additional jobs.

The Iwaki Plant is one of Nissan's main domestic engine manufacturing plants. Since it began operations in 1994, the plant has produced a total of 3.61 million 2.0-liter and 3.5-liter VQ V6 engines.

The VQ V6 engine was first installed in the Maxima sedan bound for North America in May 1994. Today the engine is available in a total of 11 models, including the Fuga, the Fairlady Z (350Z in other markets), the Murano, the Teana and the Skyline (Infiniti G35 in North America).

The 3.5-liter VQ V6 engine was named to Ward's 10 Best Engines list in 2004 for the 10th straight year. Nissan's VQ V6 is the only engine that has made the list every year since Ward's Communications, Inc., started presenting the award.

The Iwaki Plant, which was constructed with an initial investment of 57 billion yen, has a land area of 201,500 square meters and a floor space of 66,800 square meters. The plant employs about 600 workers, making it one of Japan's biggest engine manufacturing plants.

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