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TOKYO, June 2 (Reuters) Nissan Motor Co., Japan's second-largest automaker, and mini vehicle maker Suzuki Motor Corp. said on Friday they would expand their business tie-up, including by sharing manufacturing facilities in emerging markets such as India.

Starting at the end of this year, Nissan will supply a mini-van to Suzuki on an original equipment manufacturing basis, and Suzuki will build another mini vehicle for its partner, both vehicles aimed at the Japanese market.

From 2008, Nissan will also supply a compact pickup truck to Suzuki, mainly for sale in North America. Suzuki in return will provide a new ''A'' segment vehicle for Nissan, mainly for sale in Europe.

''This expansion is part of Nissan's continuing drive into new market segments and further global expansion, as set out in the Nissan Value-Up business plan,'' Nissan Chief Operating Officer Toshiyuki Shiga said in a statement.

Suzuki President Hiroshi Tsuda also said in a statement that the expansion of the alliance would boost production volume and strengthen the company's global competitiveness. The two companies said they had no plan to form a capital tie-up.

Nissan, held 44 percent by France's Renault SA, currently consigns production of the 660cc Moco minicar to Suzuki, which sells the model as the MR Wagon under its own badge.

Shiga had said this week that he wanted to expand Nissan's line-up of minivehicles, which have been grabbing a bigger slice of the Japanese car market. He added Nissan had no intention of developing the cars on its own.

Nissan also procures a 660cc passenger car and commercial car from Mitsubishi Motors Corp. under a similar original equipment manufacturing deal.

Suzuki separately said on Friday it would issue 150 billion yen ($1.33 billion) in convertible bonds, raising funds for capital spending and loans to affiliates. Payment is scheduled for June 29 and the bonds will expire on March 29, 2013.

Before the announcement, shares in Nissan closed up 0.15 percent at 1,372 yen, while Suzuki rose 2.88 percent to end at 2,675 yen. The Nikkei average was up 1.84 percent.

REUTERS CS HT1425

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