 |
Corporate September
25, 2003 |
|
| Honda Begins Production of Automatic Transmissions at New Plant in Indonesia |
Jakarta, September 25, 2003 --- P.T. Honda Precision Parts Manufacturing,
Honda's parts production subsidiary in Indonesia, held an inauguration ceremony
today at its new plant, marking the start of production of automatic transmissions
and engine valves for automobiles. The new plant represents a capital
investment of approximately US$64 million and employs approximately 1,000
associates.
The automatic transmissions produced at P.T. Honda Precision Parts
Manufacturing will be mated to the 2-liter-class 4-cylinder engine to be equipped
in models such as the Accord and CR-V. The new plant is expected to achieve an
annual production capacity of 250,000 automatic transmissions and 550,000
engine valve sets in 2004. The automatic transmissions and engine valves
manufactured at the new plant will be supplied to Honda's automobile plants
within the ASEAN region as well as exported to Honda plants in other regions
including Europe.
Automatic transmissions are one of the most sophisticated components of an
automobile and require advanced machining technologies. Honda has become
the first major automaker to produce automatic transmissions from start to finish
in the ASEAN region. Production processes include casting, forging, machining
and assembly. Honda began motorcycle production in Indonesia in 1971, and
has been producing motorcycle transmissions, including gears and other parts.
Based on this technological expertise, experience and know-how, Honda has
now been able to achieve local production of automatic transmissions for
automobiles in the region.
Under the concept of "Made by Global Honda," Honda has been working to
establish a highly efficient and flexible global network for production and parts
procurement, making the best use of the competitive strength of its production
facilities located in different regions in the world. By expanding production of
powertrain components in Indonesia, Honda is improving the local content ratio of
its vehicles within the ASEAN region. Further, by capitalizing on its highly
competitive production facilities in Asia, which produce low cost, high quality
components, Honda will meet the needs of expanding automobile production
while further enhancing its global competitiveness.
In February 2003, P.T Honda Prospect Motor, a Honda automobile manufacturing
and sales joint venture, began operation of a new automobile plant in Karawang,
in the suburbs of Jakarta. In late May 2003, the transfer of automobile production
from the previous plant to the new plant was completed. The total amount
invested in construction for the new plant was approximately US$70 million, with
production for the first year forecasted at approximately 20,000 units. Annual
production capacity is targeted to reach 40,000 units in 2004. The current
number of associates is approximately 2,000, responsible for assembly of three
models -- the Civic, CR-V and Stream.
Outline of P.T. Honda Precision Parts Manufacturing
| Established: |
July 2002 |
| Location: |
Bukit Indah Industrial Park, Suburbs of Jakarta |
| Representative: |
Fumio Kusunoki |
| Employment: |
Approx. 1,000 associates (in 2004) |
| Capital Investment: |
US$64 million |
| Capitalization Ratio: |
Honda Motor Co., Ltd. 100% |
| Start of Production: |
September 2003 |
| Products: |
Automatic transmissions and engine valves for automobiles (casting,
forging, machining and assembly) |
| Production Capacity: |
250,000 automatic transmissions (in 2004)
550,000 sets of engine valves (in 2004) |
Outline of P.T. Honda Prospect Motor
| Established: |
February 1999 |
| Location: |
Karawang, approx. 70km southeastward from central Jakarta |
| Representative: |
Hadi Budiman |
| Employment: |
Approx. 2,000 associates |
| Capital Investment: |
US$70 million |
| Capitalization Ratio: |
Honda Motor Co., Ltd. 51%
P.T. Prospect Motor 49% |
| Start of Production: |
February 2003 (new plant) |
| Products: |
Civic, CR-V, Stream |
| Production Capacity: |
Approx. 40,000 units/two shifts |
|
|
|
Printer Friendly