Hyundai Motor Co. Ltd. says it will build a new engine plant at its Montgomery, AL, plant to begin production in September 2008.

The engines will be for vehicles built by Hyundai Motor America Inc. in Montgomery and by affiliate Kia Motors Corp. at its new plant in West Point, GA, slated to open in 2009.

Hyundai already produces V-6 engines for its Sonata midsize sedan and Santa Fe cross/utility vehicle in Alabama.

The South Korean auto maker also announces it will begin mass production of hybrid-electric vehicles in 2009, with an expected annual target of 300,000 units by 2015.

The South Korean government already employs Accent and Pride hybrid test fleets.