UPDATE 1-Toyota to build new Brazil plant as demand surges

(Adds details on meeting with president, Toyota plants)

BRASILIA, July 15 (Reuters) - Japanese automaker Toyota Motor Corp (7203.T)(TM.N) will invest between $600 million and $700 million to build a new plant in Brazil to keep up with surging demand, Brazil's trade and industry minister said on Tuesday.

Miguel Jorge told reporters that Shozo Haseb, Toyota's chief executive for the Mercosur region, met with President Luiz Inacio Lula da Silva in Brasilia on Tuesday to inform him of the company's plans.

The new plant will be located in Sorocaba in the interior of Sao Paulo state, and will produce a compact model for the Brazilian market and for export, Jorge said.

Toyota, which has been in Brazil for 50 years, already has an auto plant in Indaiatuba, also in Sao Paulo state, where it makes the Corolla sedan. It also has a parts factory in Sao Bernardo do Campo, a gritty industrial city on the outskirts of the city of Sao Paulo.

The auto industry as a whole has been investing heavily in Brazil to keep up with a booming economy, which has helped lift car and truck sales to one record after another. (Reporting by Fernando Exman; writing by Todd Benson; Editing by Derek Caney)