Malaysia's Perodua to build $257 million factory

KUALA LUMPUR, Malaysia (AP) -- Malaysian compact car maker Perodua says it will spend 790 million ringgit ($257 million) to build a second manufacturing plant as part of its expansion.

Managing Director Aminar Rashid says the new plant, located next to Perodua's factory in Rawang on the outskirts of Kuala Lumpur, will have an initial production capacity of 100,000 units when completed by mid-2014. The existing plant has an output of 200,000 units a year.

He said Thursday the new plant will have modern systems to boost efficiency and bolster Perodua's competitiveness to tap the global market. Its exports are currently minimal at 10,000 units a year.

Perodua, which is partly owned by Japan's Daihatsu Motor Corp., is the top selling car brand in Malaysia with a 31 percent share of the domestic market.