The plan will produce four-cylinder 1.3-litre petrol engines and production is scheduled to start late next year.
The announcement was made today by Tokuichi Uranishi, executive vice president, Toyota Motor Corporation, during a ceremony at the plant attended by Welsh assembly Government first minister Rhodri Morgan AM and deputy first minister and minister for economy and transport Ieuan Wyn Jones AM.
The announcement represents the second major investment in engine production at the Deeside Plant since 2007, and is in addition to the £700 million already invested in the Deeside operation.
Uranishi said: “This announcement recognises the quality of the UK workforce and demonstrates Toyota’s confidence in our UK investment and continued efforts towards local production. This new engine, along with the recent investment here at Deeside, means this plant will have two of the most advanced engine manufacturing lines in the world.
“In making this announcement today, I would like to recognise the partnership we have with the Welsh Assembly Government, suppliers and the local community.”
The Deeside engine plant currently produces fully-assembled petrol engines for Toyota’s vehicle manufacturing plant at Burnaston, Derbyshire where the Auris and Avensis models are produced.
The plant also undertakes casting and machining of engine sets for export to Toyota plants in countries across the world - including Venezuela, Brazil, Turkey, France, South Africa and Japan – for local assembly.
Production began in September 1992 and in February 2007 the plant celebrated the production of its three millionth engine.