Toyota Motor Manufacturing Alabama (TMMAL) is planning to invest $80m in its plant to increase the North AmericanV6 engine production.
The current investment, bringing the total investment to about $700m in the plant, will facilitate the company to produce additional 216,000 engines every year, further boosting V6 engine annual capacity to 362,000.
The increased production, which will begin in March 2014, will also add 125 new jobs.
Alabama plant currently assembles 4-cylinder, V6 and V8 engines for eight of 12 Toyota's North American constructed vehicles.
According to the company, the investment is also expected to increase engine production at the Huntsville plant to about 700,000 per year, further increasing total Toyota engine production in the US to about 1.4 million per year.
Toyota is also planning to increase production in its plants including Indiana, West Virginia, Canada and Kentucky.