| Malacca, June
12, 2001 --- DRB Oriental Honda Sdn.Bhd. (DOH) (HQ: Kuala Lumpur, CEO: Mitsuru
Ozaki), Honda Motor Co. Ltd's Malaysian manufacturer and retailer of 4-wheel
vehicles, announced today that it signed a Memorandum of Agreement with
HICOM Indungan Sdn. Bhd. (HISB) for the purchase of 80 acres of land in
Malacca for the construction of a plant to manufacture Honda cars.
The agreement signed by Mr. Mitsuru Ozaki, Managing Director & CEO of DOH and Dato' Ahmad Khairummuzammil Bin Mohd. Yusof, Director of HISB was witnessed by the Chief Minister of Malacca, Y.A.B. Datuk Wira Mohd. Ali Rustam and the Chairman of DRB-HICOM Berhad, Y.B. Tan Sri Dato' Seri Mohd. Saleh Sulong.
The land is situated in Mukim of Pegoh, Alor Gajah District, State of Malacca. Piling work for a total investment of RM170 million will commence in September, and the project is expected to be completed in one year. The roll out of the first unit of mass production is scheduled for early 2003.
The capacity of the plant is 20,000 units per year.
DRB-HICOM Berhad, Oriental Holdings Berhad and Honda Motor Co., Ltd signed a Joint Venture Agreement in November 2000 for the purpose of manufacturing and distributing Honda automobiles, spare parts, accessories and components. The new entity, DRB-Oriental-Honda Sdn.Bhd. has an equity structure which will see the Malaysian companies, DRB-HICOM (36%) and Oriental Holdings (15%), with a combined stake of 51%, whilst Honda Motor holding 49%.