Toyota Motor plans to establish another factory in Malaysia, at an estimated cost of 30 billion yen ($275 million), with an expected production of 50,000 vehicles a year, said a report.

By building the new factory, Toyota aims to increase its supply in a region expected to enjoy growth over the medium term while also improving the efficiency of its production network, added the Nikkei Asian Review report.

The new facility will be built by UMW Toyota Motor, a joint venture involving Toyota Tsusho and Malaysian conglomerate UMW Holdings, and is slated to come online in 2018, it said.
 
The automaker’s two existing factories make vehicles for sale within the country. Efficiency has been an issue, so having another factory nearby will let Toyota split up production based on vehicle type, the report said.