Kolkata, March 22 (IANS) Tata Motors Monday signed a turnkey contract with Myanmar Automobile & Diesel Industries Limited, a government enterprise, to set up a heavy truck plant at Magwe, around 480 km from Yangon.

The project has been funded by a line of credit from the Indian government.

The facilities planned at the plant include a flexible chassis and frame assembly line along with a cab manufacturing, painting and trimming setup, a company statement here said.

'The plant is expected to become operational by the last quarter of 2010-11, with a capacity of 1,000 vehicles per year. The capacity can be expanded to 5,000 units,' the statement said.