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October 28, 2011

Jialing-Honda Marks Completion of New Power Products Plant

CHONGQING, China, October 28, 2011 - Jialing-Honda Motors Co., Ltd., the Honda power products production and sales joint venture in China, today held a ceremony to commemorate the completion of its new power products production plant.

Jialing-Honda Marks Completion of New Power Products Plantzoom

The new plant, an investment of approximately 210 million R.M.B., includes molding, stamping, painting, assembly, final inspection, and product packaging processes. It will begin production next month while leveraging manufacturing technologies Jialing-Honda has amassed through production at its existing plant, as well as new environmental technologies employed for this new plant. Jialing-Honda will discontinue production at its existing plant within this month timed to the start-up of production at the new plant.

Jialing-Honda is currently producing power products for domestic markets in China as well as for export. Honda is not only expecting further growth in demand in China, but also planning to increase power products exports from China, which will position this new plant as one of the most important production operations for Honda’s global power products business.

The new plant will be ready to produce at the annual production capacity of 900,000 units by the end of 2011. However, the plant was designed while envisioning future capacity expansion of up to 2 million units a year, which will enable Honda to accommodate rapid growth in demand in the future.

Honda’s “green factory” concept was employed in various areas of this state-of-the-art, environmentally-responsible and energy-saving plant. For instance, a solar power generation system was installed to reduce the use of electricity from the power grid and an environmentally-responsible powder coating process which does not require organic solvents was adopted to significantly reduce VOC emissions. Moreover, the plant will reuse rainwater and wastewater and adopt a natural lighting system.

In addition to general purpose engines, water pumps, and lawn mowers, Jialing-Honda began production of small-size tillers in April of this year. In August of this year, Jialing-Honda’s general purpose engine, GX390, became the first in the industry to comply with the strict exhaust gas emissions regulations announced by the Ministry of Environmental Protection of the People’s Republic of China. These activities and achievements demonstrate Honda’s proactive commitment in offering new products which provide new value to customers and in addressing environmental issues.

Honda will continue offering advanced and environmentally-responsible power products for customers in China and all around the world.

< About the new plant >

Location: Chongqing Yubei District Airport Industrial Park, China
Lot size: 180,000 m2
Completion of construction: October 2011
Total floor space: Approximately 57,000 m2
Total investment: Approximately 210 million R.M.B.

< About Jialing-Honda Motors Co., Ltd. >

Establishment: January 1993
Capital: US$ 35.7 million
Capitalization ratio: 60% Honda Motor Co., Ltd.
10% Honda Motor (China) Investment Co., Ltd.
30% China Jialing Industrial Co., Ltd. (Group)
Location: Chongqing, China
Representative: Seiji Kuraishi, Chairman
Hiroshi Kamiya, President
Employment: Approximately 1,600 associates (as of October 2011)
Products: General-purpose engines, lawn mowers, water pumps, small-size tillers, etc.

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