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OSAKA, Jan. 9 (Kyodo) — Yanmar Co., a Japanese maker of agricultural equipment, engines and boats, said Wednesday it will build a new plant in Indonesia to produce diesel engine parts and other products.

Yanmar said its move to set up the factory at an industrial complex in eastern Jakarta by investing roughly 7.5 billion yen is aimed at enhancing the company's cost competitiveness through overseas production.

The plant will have an area of about 110,000 square meters and the parts to be manufactured will be supplied to Yanmar group companies.

Yanmar said production is scheduled to begin in August and its target production capacity for fiscal 2015 is approximately 30,000 tons.

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