TOKYO (AFP) -- Honda Motor, Japan's third-largest automaker, announced plans Wednesday to invest at least 1.34 billion dollars in new facilities in Japan and North America by 2010 to keep up with record sales.

Honda plans to boost annual global sales to more than 4.5 million automobiles by 2010, up from a record 3.4 million in the financial year just ended, chief executive Takeo Fukui said in a speech.

Honda will build a new plant in Saitama prefecture, just north of Tokyo, at a cost of about 70 billion yen (640 million dollars), he announced.

The new plant with 2,200 workers will begin producing engines and finished automobiles from 2010, lifting Honda's total annual production capacity in Japan to 1.5 million vehicles from 1.3 million previously.

Honda will also renovate an existing plant nearby and build a new research and development center in central Tochigi Prefecture at a cost of some 17 billion yen (155 million dollars) to advance its fuel-efficient technology. "Honda will establish a high quality and highly efficient manufacturing system by applying the latest technologies," said Fukui.

"The new plant (in Saitama) will be responsible for evolving these manufacturing systems to other Honda operations across the world," he added.

The automaker also plans to open a new factory in the United States in 2008 at a cost of about 400 million dollars.

The location of the new facility, which is expected to employ 1,500 people, has not yet been decided.

The new plant will boost Honda's annual auto capacity in North America to 1.6 million vehicles from 1.4 million.

In Canada, Honda plans to spend 140 million U.S. dollars building a new plant producing 200,000 engines a year from 2008 and employing 340 people.

It also aims to double production capacity of its auto plant in Brazil by 2008 while a new factory in China is due to open later this year.

In motorcycles, Honda expects to raise production in India, the Philippines and Pakistan, taking total output in Asia to 14 million a year by 2007, compared with eight million in 2004.

Honda plans to sell 18 million motorcycles worldwide by 2010.

Japanese automakers are enjoying brisk sales, mainly overseas, even as U.S. giants General Motors and Ford shut plants and reduce capacity in an effort to return to profitability.

Honda Motor reported a fifth straight year of record profits last month helped by robust overseas sales and a weaker yen.