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The new plant will produce a new generation of horizontally opposed engines to power passenger cars that will be put on the market in 2010, they said.
Fuji Heavy is curbing capital spending as it expects a group net loss in the current business year to March 31, 2010, for the second year in a row.
But the company decided to build the new plant in order to help make its passenger cars more environmentally friendly, the officials said.
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