Car giant Toyota is to invest £88 million at one of its factories in the UK to build a new small petrol engine, it has been announced.

The Japanese firm said production of the engine would start in late 2009 at the plant in Deeside, North Wales.

Mr Tokuichi Uranishi, executive vice-president of Toyota, said at the site: "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."

First Minister Rhodri Morgan said: "The fact that Toyota has chosen to develop these new engines in North Wales is testament to the skills of the local workforce and the assistance given to the company by the Assembly Government for the development of new engine technology."