Toyota Motor Corporation president Akio Toyoda met with Brazilian President Dilma Rousseff and announced plans to build a $500 million engine plant in Sao Paulo state.

The plant, which will be built in the city of Porto Feliz, is expected to begin operating in 2015, Toyoda told reporters after his meeting Wednesday with Rousseff.

The plant will produce engines for Toyota's Etios and Corolla models, with domestic content at around 85 percent, the executive said.

The engine plant is expected to create between 600 and 700 direct jobs, Toyoda said.

"The new engine plant is planned to produce 1.3-liter and 1.5-liter engines for the Etios and 1.8-liter and 2.0-liter engines for the Corolla. Production is scheduled to start in the second half of 2015 with a planned annual capacity of approximately 200,000 units," Toyota Motor said in a statement released Thursday.

Toyota do Brasil Ltda., Toyota Motor Corp.'s sales and manufacturing unit in Brazil, opened a new vehicle plant in Sorocaba on Thursday.

"Fifty-four years since we arrived in Brazil in 1958, I am extremely delighted to be here for the opening of the new Sorocaba Plant and to present the Etios - a true Brazilian car for the Brazilian people - that only we who have made such efforts to know the roads of Brazil can build. From my heart, let me say that Toyota wants to grow further, together with Brazil," Toyoda told those attending the plant's inauguration.

The Toyota CEO was joined at the ceremony marking the plant's opening by numerous Brazilian dignitaries and other company executives.

"The Sorocaba Plant opened today is scheduled to begin production of the 'Etios' compact sedan in September, with a starting annual production capacity of 70,000 units. The new plant represents an investment of approximately 600 million U.S. dollars and the creation of approximately 1,500 new jobs. Production increases are to be considered based on demand," Toyota Motor Corp. said in a statement.

Toyota do Brasil has its headquarters in São Bernardo do Campo, a city in São Paulo state, and employs about 4,700 people. EFE