Toyota and Mazda have selected Huntsville, Ala., as the site for their joint-venture manufacturing plant, which represents a $1.6 billion investment that Mazda and Toyota plan to make with equal funding contribution.

The plant will have the capacity to build 300,000 vehicles each year, both automakers announced. Production will be split between two lines for each company to produce a new Mazda crossover model and the Toyota Corolla. The facility is expected to create up to 4,000 jobs, with production expected to begin by 2021.

Mazda said it is enhancing its commitment to the U.S. market and will focus efforts on manufacturing and increasing sales in the country. This is Mazda’s first U.S. plant.

For Toyota, the new plant will be its 11th U.S. manufacturing facility, Toyota said. Alabama is the fifth largest producer of cars and light trucks nationally, and also include Toyota’s engine plant in Huntsville, where Toyota employs 1,400 team members.

The effort is part of a larger business alliance between the two companies, which includes joint development of electric vehicle and safety technology, as well as expanding complementary product offerings between both manufacturers.