Japan’s Fuji Heavy Industries Ltd plans to open a new plant as early as next year to make parts for Boeing Co’s next-generation 777X passenger jets, the Nikkei reported.

Fuji, which makes Subaru cars, is expected to spend more than 10 billion yen ($98 million) on the plant, which will be built near a factory that assembles parts for Boeing’s 777 jets in the Aichi Prefecture city of Handa, the business daily said.

The new plant will make parts to connect the primary wing to the fuselage and is expected to be able to equip 100 aircraft a year, the Nikkei said.

Boeing will continue making the plane’s wings in the United States in response to labor union demands, the paper said.

As with the 777 jets, Mitsubishi Heavy Industries and Kawasaki Heavy Industries are expected to build bodies for the 777X, the paper said.

ANA Holdings Inc in March ordered 20 777X wide-body jets.

Boeing has traditionally held more than 80 percent of Japan’s commercial aviation market due largely to strong links with Japanese suppliers and political ties between Tokyo and Washington.