Bangkok - General Motors Wednesday announced plans to invest 445 million dollars to build a new diesel engine plant in Thailand and to upgrade its existing vehicle assembly plant.

The diesel engine plant, GM's first in South-East Asia, is to be located in Rayong province, eastern Thailand, where the US automotive giant has been operating an assembly plant for the past eight years.

The new plant, scheduled to begin production in 2010, will produce more than 100,000 2.5-litre and 2.8-litre turbo-diesel engines annually.

"This plant will enable us to deliver to our customers the cleanest, most efficient diesel engine technology available," said Steve Carlisle, president for General Motors South-East Asia Operations and Chevrolet Sales (Thailand). "This is crucial in these days of rising fuel prices."

GM chairman and chief executive officer Rick Wagoner added that the investment in the diesel plant and expansion of existing facilities was in keeping with GM's strategy of expanding its presence in emerging markets.

"General Motors is intent on becoming the industry leader here in Thailand and across ASEAN," said Wagoner.

Thailand over the past two decades has become the main hub for automobile assembly and manufacturing in the Association of South-East Asian Nations (ASEAN) which groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. (dpa)