News Releases 2013

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Malaysia
March 13, 2013

Official Opening of Honda's New RM222 Million Motorcycle Production Plant

PENANG, Malaysia, March 13, 2013 - Construction of Boon Siew Honda's new one-stop motorcycle production facility, which started in the third quarter of 2011, is now completed and fully operational.

The 222 million Ringgit one-stop production plant in Batu Kawan, Penang was officiated by the Yang Berhormat Dato' Sri Mustapa bin Mohamed, Minister of International Trade and Industry Malaysia on 12 March. Satoshi Okada, the Managing Director of Boon Siew Honda accompanied the Minister on a guided tour to introduce various advanced technologies the company brought in from overseas to raise production capacity and ensure stringent quality control. Also present were President & CEO of Honda Motor Co., Ltd. Takanobu Ito as well as Oriental Holdings Group Executive Chairman and Boon Siew Honda Chairman, Dato' Seri Loh Cheng Yean.

The new facility occupies a 23.7ha site and is five times larger than the previous Mak Mandin plant in Butterworth with an annual production capacity of 300,000 units. It marks a significant milestone in the company's plan to consolidate Manufacturing, Sales, Customer Service, Spare Parts and Safety Riding into one integrated location for management efficiency and greater customer satisfaction.

The facility deploys highly efficient production system with the use of advanced technologies such as a solar photovoltaic system, high coating efficiency technologies and an efficient electro deposition coating line for volatile organic compounds (VOCs). The new streamlined processes not only increase productivity but contribute to greater energy savings and reduction of manpower and material wastage.

Solar Photovoltaic System - 32m2 of solar photovoltaic modules are installed on the car park shelter roof to produce 5000kWh/year of renewable energy. Besides benefiting from reduced grid energy usage, the advanced solar photovoltaic technology from Honda Soltec Japan also contributes to reducing an estimated 3.5 tonnes/year of carbon dioxide - the main cause of green house effect. The solar photovoltaic system uses CIGS (Copper, Indium, Gallium, Selenium) solar cell that is 2 to 3 μm thick, about 1/40 the thickness of a strand of hair. Thus, it uses less raw materials to produce, yet delivers more stable energy output from dawn to dusk for general power usage of the new plant.

Solar Photovoltaic System
Solar Photovoltaic System

Twin-Gun Painting - Developed by Japan and improved by Honda's two-wheeler plants overseas, this Twin-Gun technology is the first of its kind for two-wheeler in the world. Coupled with Rotating Painting Process, precise paint thickness of 3μ is achieved compared to 8μ using manual operation, while coating efficiency increased from 15% to 45%.

Twin-Gun Painting
Twin-Gun Painting

Rotating Painting Process - Complements the automated Twin-Gun robotic arm to achieve uniform paint finishing with minimal paint wastage, while reducing the time and operational personnel required to raise production efficiency.

Rotating Painting Processzoom
Rotating Painting Process

Shape Conforming Painting Robot - Developed in Japan, the system automatically adjust the painting process to match the product shape. This increases painting efficiency by 35%, at the same time, reduces 50% of material cost compared to manual operation.

Shape Conforming Painting Robot
Shape Conforming Painting Robot

Engine Receiving Jig - Developed in Japan and first to be introduced in Malaysia. Unlike existing jig which needs jig replacement for every model change, It helps to reduce 22 sec of man-hour per unit and RM160,000 per model while achieving greater improvement of operational efficiency.

Engine Receiving Jig
Engine Receiving Jig

Emission Lab - Equipped with advanced exhaust gas measurement system to ensure full ECE compliance in the new plant. The facility allows for regular tests and verification of production units' emission levels to inspect the value of CO2, maintenance quality and engine operational efficiency according to ECE regulation. The lab also facilitates inspection and improvement on preliminary fuel supply system for new production model. With cooperation among Honda Motor Kumamoto Factory, Thai Honda and Honda R&D in Thailand, Boon Siew Honda is now able to conduct detailed emission analysis and defects detection based on correlation data received.

Emission Labzoom
Emission Lab

The Final Inspection Facility - In order to effectively perform quality and operation efficiency inspection on complete build units (CBU), various new inspection facilities had been brought in. These include test stand, speedometer tester, brake tester and headlight tester. Safety during operation of inspection and accuracy of inspection are further improved and defect extraction is now possible.

The Final Inspection Facility
The Final Inspection Facility

For assurance of top quality standard, the new plant is also equipped with a 400m test course and an emission lab to ensure compliance with the ECE regulations for exhaust emission in Malaysia.

The new plant will continue to produce the current motorcycle models - EX5 Dream, Wave Dash, Wave 100, Wave 110, Future, PCX, Spacy and Icon - for the local market. With availability of the new cutting-edge facility and the latest advances in Honda's manufacturing technologies, Boon Siew Honda aims to expand its capabilities to assemble medium engine capacity and high value-added models to cater for more diversified market segments in the country.

Since local production of Honda motorcycles started in 1969, a total of 4.4million units have been manufactured. Honda maintains its leadership with a market share of 47% in 2012.

For more information, visit www.boonsiewhonda.com.my or call the Boon Siew Honda Toll-Free number at 1800-88-3993 (Monday to Friday, 9am - 5pm, except for public holidays).

About the New Plant

Location Penang, Malaysia
Start of Production February of 2013
Production Capacity 300,000 units/year (2-Shift)
Employment Approximately 1,100 associates (including temporary staff)
Total Floor Space 44,426m2
Lot Size 237,056m2
Capitalization Ratio 51% Honda Motor Co., Ltd.
49% Oriental Holdings Bhd.
Representative Satoshi Okada, Managing Director & Chief Executive Officer
Business Motorcycle Production, Sales, Service and Spare Parts
Motorcycle Dealers Approximately 900 dealership
(including multi-brand selling shop)

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