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TOKYO, July 23 (Reuters) Honda Motor Co. plans to invest about 8 billion yen ($68.86 million) to build a plant in central Japan to produce key components for its hybrid cars, the Nihon Keizai business daily reported on Sunday.

Japan's third-biggest auto maker will build the factory on the grounds of its Suzuka factory in Mie Prefecture, central Japan, Nikkei said.

The plant, to be operational in 2008, would enable Honda to quadruple its annual production capacity for electric motors to 200,000 units and cut the cost of assembling small-sized hybrid cars, the daily said.

Honda officials were not immediately available for comment.

($1=116.17 Yen) REUTERS DKS PM1803