Toyota has selected North Wales to build its new four-cylinder 1.3-litre petrol engine from 2009, and is backing their Deeside factory boost with £88 million.
This follows the £700 million already invested to ensure smooth supply to the Derbyshire assembly plant for the Auris and Avensis ZR-engines.
Tokuichi Uranishi, executive vice-president of Toyota Motor Corporation, said: "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."
As well as the fully assembled engines, Deeside also produces casting and machining of engine sets for export to Toyota plants in countries across the world – including Venezuela, Brazil, Turkey, France, South Africa and Japan.