News Releases 2006
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CorporateChinaSeptember 19, 2006
Second Guangzhou Honda Auto Plant To Begin operation

GUANGZHOU, China, September 19, 2006 – Guangzhou Honda Automobile Co., Ltd. (GHAC) began production at its second automobile plant, the new ZengCheng plant in Guangzhou City, Guangdong province. With an annual production capacity of 120,000 units the new plant increases Guangzhou Honda’s total production capacity to 360,000 units. The ZengCheng plant is producing the core model Accord, which is also produced at the company’s first plant, the HuangPu plant.


Complete water recycling system

Water-based paint process

Key local government officials and representatives of Guangzhou Automobile Industry Group were among more than 1,000 people attending the opening ceremony and celebration for the new plant, along with Takeo Fukui,president & CEO of Honda Motor Co., Ltd., and Atsuyoshi Hyogo, senior managing director and COO of China Regional Operation for Honda Motor Co., Ltd.

For the ZengCheng plant, Honda’s most advanced, high quality and highly efficient production line was achieved with a new layout designed by integrating production know-how from the HuangPu plant, with Honda’s New Manufacturing System, and “green factory” concept, which focuses attention on both the environment and ergonomic conditions in the workplace.

The new plant’s environmentally-friendly features include the world’s first auto plant with a “complete water recycling system” resulting in no water releases outside the factory. This recycling system is expected to save 170,000 ton/year water. New paint processes have helped reduce releases of volatile organic compounds (VOCs) to 20g/m2, the world’s lowest level, through use of water-based paints for both the undercoat and intermediate coat, and adopting automated processes to improve painting efficiency.

GHAC began production in March 1999, delivering Honda’s latest models with world-class quality to Chinese customers, opening a new era in the Chinese automobile market. Since then, the production capacity has grown steadily with the growth of the Chinese market, and with the startup of the new ZengCheng plant, the total production capacity of GHAC has increased to 360,000 units.

For its sales network, Guangzhou Honda plans to increase the number of its exclusive dealer locations to 290 by the end of this year while striving to enhance both production and sales to provide the most advanced products and after-sales service with the highest quality. It will enable the company to meet customer expectations in the Chinese automobile market.

[About Guangzhou Honda Automobile Co., Ltd.]
Established: July 1998

Capital Investment: US$139.94 million

Capitalization Ratio: 40% Honda Motor Co., Ltd.
10% Honda Motor (China) Investment Co., Ltd.
50% Guangzhou Auto Group Corp.

Location: Guangzhou City, China

Representative: Lu Zhifeng, Chairman
Sho Minekawa, President (Operating Officer, Honda Motor Co., Ltd.)

Employment: Approximately 5,400 associates

Production Start: March 1999

< HuanPu Plant >
Products: Accord, Odyssey, City, Fit

Annual Capacity: 240,000 units

Lot size: 690,000 m2

< ZengCheng Plant >  
Products: Accord

Annual Capacity: 120,000 units

Lot size: 1,000,000 m2 * 20km east of the HuanPu Plant

Investment: 2.2 billion R.M.B

Related Links

· Guangzhou Honda Automobile Co., Ltd.
· China
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