Toyota Motor Corp. says it will build a €170 million ($167 million) engine plant in Poland.

The plant, to be located near the southwestern Polish town of Wroclaw, is expected to produce up to 120,000 2L diesel engines annually for the Toyota Corolla and Avensis, which are made in the U.K. and Turkey.

Production is slated to begin in 2005 and 350 jobs will be created, Toyota says.