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Corporate July
10, 2002 |
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| Honda Expands Production of Auto Powertrain Components in Asia |
Tokyo,
July 10, 2002 --- Honda Motor Co., Ltd., has announced plans to expand production
capacity in Asia for automobile powertrain components, including engine parts
and transmissions. The new and expanded facilities will both raise the local content
ratio of Honda products produced in the Asia region and supply components to Honda
auto plants in other regions, including Europe.
A new parts manufacturing subsidiary, P.T. Honda Precision Parts Manufacturing,
will be established in Indonesia. With a target production start-up of fall 2003,
the new company will build a new plant, which will produce components such as
automatic transmissions, continuously variable transmissions (CVT) and engine
valves.
P.T. Honda Precision Parts Manufacturing will represent an investment of approximately
8 billion yen (U.S. $66 million) and new employment of 900 associates. Production
will start with automatic transmissions for 2-liter-class 4-cylinder engines to
be equipped in models such as Accord and CR-V. The combined annual production
capacity of these transmissions will reach 250,000 units when production of CVTs
for small vehicles will be added in 2004. These transmissions will be supplied
to Honda automobile plants outside the region such as the plant in the U.K., as
well as plants in ASEAN countries. The production capacity of engine valves is
targeted to reach 550,000 sets in 2004 for automobile production in ASEAN countries
and other regions in the world as well.
In the Philippines, Honda will invest about 2 billion yen (U.S. $16.5 million)
in an existing facility, Honda Parts Manufacturing Corp., which is currently producing
automobile service parts. The company will begin production of manual transmissions
this month, with a production plan of 10,000 units for the first year to be supplied
to Honda plants in the ASEAN region. When its annual production capacity reaches
140,000 units in fall 2003, the company will begin supplying transmissions to
Honda automobile plants outside the region, including the plant in the U.K.. Additional
employment of 200 associates is expected with the new expansion.
From this fall, in China, Honda's joint venture company, Dongfeng Honda Auto Parts
Co., Ltd., which currently produces a variety of automobile components, will export
engine parts including crank shafts and connecting rods to the automobile plant
in the U.K. for CR-V production.
Under the concept of "Made by Global Honda", Honda has been working to establish
highly efficient and flexible networks of global production and parts procurement,
making the best use of competitiveness of its production facilities located in
every region in the world. By capitalizing on its highly competitive production
facilities in Asia, which have the capability to produce both low cost and high
quality components, Honda intends to meet the increasing demand for automobile
production while further enhancing its global competitiveness.
Outline of P.T. Honda Precision Parts Manufacturing (Indonesia)
| Established |
: |
August 2002 |
| Location |
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Bukit Indah Industrial Park |
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Approx. 70km southeast of central Jakarta, Indonesia |
| Representative |
: |
Fumio Kusunoki, President |
| Employment |
: |
Approx. 900 associates (in 2004) |
| Capital Investment |
: |
Approx. 8 billion yen |
| Capitalization Ratio |
: |
Honda Motor Co., Ltd. 95%, P.T. Prospect Motor 5% |
| Start Production |
: |
Fall 2003 |
| Products |
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Automatic transmissions, CVTs, engine valves |
| Annual Capacity |
: |
250,000 automatic transmissions and CVTs (in 2004)
550,000 sets of engine valves (in 2004) |
Outline of Honda Parts Manufacturing Corp.
| Established |
: |
December 1992 |
| Location |
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Santa. Rosa Industrial Park |
| |
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Suburbs of Manila, Philippines |
| Representative |
: |
Haruyuki Inami, President |
| Employment |
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Approx. 300 associates (in 2004) |
| Capital Investment |
: |
Approx. 2 billion yen |
| Capitalization Ratio |
: |
Honda Motor Co., Ltd. 100% |
| Start Production |
: |
July 2002 (for manual transmissions) |
| Products |
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Manual transmissions and automobile service parts |
| Annual Capacity |
: |
140,000 manual transmissions (in fall 2003) |
Outline of Dongfeng Honda Auto Parts Co, Ltd.
| Established |
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December 1994 |
| Location |
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Huizhou City, Guangdong Province, China |
| Representative |
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Takao Akimoto, President |
| Employment |
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Approx. 500 associates |
| Capital Investment |
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Approx. 3 billion yen |
| Capitalization Ratio |
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Honda Motor Co., Ltd. 56%, Dongfeng Motor 35%,
other local companies 9% |
| Start Production |
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April 1995 |
| Products |
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Engine parts (crankshafts, connecting rods, cam shafts, sleeves), brake
discs, and knuckles |
| Annual Capacity |
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240,000 sets of connecting rods and crankshafts (in 2003) |
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