TOYOTA is set to receive a 150 million Euro grant for the modernisation of its vehicle manufacturing plant in Turkey.

The project is seen as important economically as the area involved, Adapazari in the Eastern Marmara region, has not yet recovered from the effects of the disastrous earthquake of August 1999.

The European Investment Bank (EIB), the European Union's long-term financing institution, is providing the loan.

The investment will increase the plant's capacity to accommodate new models in the Toyota Corolla range.