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Toyota Motor Corp will build a new 600-million-dollar auto plant in Brazil that is set to initially churn out 70,000 vehicles a year and employ 1,500 workers, the world's biggest car maker said Friday, according to foreign media.

The factory in Sorocaba, 100 kilometres (60 miles) west of Sao Paulo, will be the Japanese auto giant's third in the South American country, where it opened its first overseas plant in 1962.

Construction will start in September on land the company bought two years ago and production of a newly developed compact car, both for the domestic market and export, is set to begin in the second half of 2012.

Toyota do Brasil Ltda. already produces auto parts at its Sao Bernardo plant with 1,200 workers and the Corolla model at its 2,000-staff Indaiatuba plant, which are both also located in Sao Paulo state.

The company said in a statement that it "intends to expand local production in line with market growth in Brazil and other emerging markets".