Updated June 28, 2012, 2:21 p.m. ET.

Nissan Expanding U.S. Factory .

By MIKE RAMSEY

Nissan Motor Co. is expanding a Canton, Miss., plant to make its Sentra compact sedan and will add 1,000 jobs at the facility, the company said on Thursday.

Nissan plans to begin selling a redesigned version of its Sentra later this year and will produce it both at a plant in Aguascalientes, Mexico, and in Mississippi. The Canton plant's annual capacity will increase to 450,000 vehicles, from 400,000 today, said Bill Krueger, vice chairman of Nissan Americas, in an interview.

The Canton plant will add production of the Frontier small pickup truck and the Xterra sport-utility vehicle, which is being shifted from its Smyrna, Tenn., plant. The facility already makes the Altima mid-sized sedan, the Armada large SUV, Titan full-size pickup and the NV commercial truck.

Following the expansion, which should be online by year end, the plant will employ 4,500 people.

The addition of capacity in North America is part of a growing trend among Japanese auto makers. Honda Motor Co. and Toyota Motor Corp. are expanding operations in the region, in some cases shifting production from Japan where the yen has appreciated from ¥120 to $1 to below ¥80 to $1 since 2007, making exports far less profitable.

Nissan also is expanding to help meet market share and sales goals set by Chief Executive Carlos Ghosn, who has set a target of achieving a more than 10% share of the U.S. market. Through May of 2012, Nissan had an 8.1% share, according to researcher Autodata Corp.

Nissan expects sales of its Sentra to grow after the new model is released, requiring the new capacity. The company chose Canton because the line could be added quickly and economically, he said.

"This was a more strategic move. Our dealers have been making strong requests for higher output of our sedans," Mr. Krueger said.

Write to Mike Ramsey at michael.ramsey@wsj.com

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