Mitsubishi has announced plans to build a new European engine plant.

Rolf Eckrodt, Mitsubishi Motors Corporation, chief operating officer, said this new plant will be used to build approximately 200,000 units a year including the Mitsubishi GDI petrol engines and Mercedes diesel engines for the Z-car project, production of which starts at the NedCar manufacturing plant in the Netherlands in 2002/2003.

Although the location of the new plant is yet to be confirmed it is thought it will be located in Germany or Eastern Europe.