TOKYO, Sept 24: Japanese truck maker Nissan Diesel Co. Ltd. on Tuesday announced a plan to cut its mounting debt by 40 per cent in about four years by boosting business in China and possibly selling a subsidiary.

The debt-ridden firm, controlled 22.5 per cent each by Nissan Motor Co. Ltd. and French automaker Renault SA, unveiled a mid-term management policy plan from April 2003 to March 2006.

Nissan Diesel plans to cut its interest-bearing debts to 250 billion yen ($2 billion) by March 2006 from 416.9 billion yen as of March 31 in 2002.

The company said it would try to expand operations in China by enhancing ties with China’s second-largest auto group, Dongfeng Motor Corp., which already has a business tie-up with the Japanese firm.

Nissan Diesel will try to reduce inventories and cut production and sales costs.—AFP