Honda To Build New Engine Plant In Japan

High demand for fuel-efficient cars creates need for new engine plant.

Honda Motor Co., Ltd. announced plans on Dec. 19 to build a new engine plant in Ogawa, Saitama prefecture, Japan in order to accelerate production systems and capabilities for advanced engines that enables the company to meet increasing global demand for fuel- efficient vehicles. This plant will provide engines for the new automotive plant it is building in Yorii, Saitama that becomes operational in 2010.

The new plant will come on line in the summer of 2009 and will have an annual production capacity of approximately 200,000 units. Advanced engines produced at this plant will be supplied to Honda auto plants inside and outside Japan.

Honda will invest approximately 25 billion yen (US $212 million) in the new plant, with employment of approximately 500 associates.

The Yorii plant, will be built with thee concept of "a people-friendly and resource/energy-recycling Green Factory which will employ high quality and highly efficient production and logistics systems", according to a company statement. It will be a state-of-the-art automobile plant along with new engine plant, says Honda.

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