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Honda to build new factory in China in 2012,report sale data in 2009

01-23-2010, 04:15 AM
Honda to build new factory in China in 2012,report sale data in 2009

Japanese auto giant Honda Motor said Wednesday that it would build a new factory in China to meet brisk demand in the fast-growing Asian nation.

Dongfeng Honda Automobile, the Japanese company’s joint venture, will build a second factory in Wuhan, Hubei Province, aiming to start operations in the second half of 2012, the Japanese firm said.

The venture will initially spend 1.15 billion yuan (170 million dollars), to build the new plant, The new plant is expected to begin operations during the second half of 2012 with an annual production capacity of 60,000 vehicles. Over time, through further investment, Dongfeng Honda expects to boost the plant’s annual capacity to 240,000 vehicles, Mr. Ito said.

Honda Chief Executive Takanobu Ito said the Japanese auto maker, through those two joint ventures (other JV with Guangzhou Automobile Industry Group Co) , sold a total of 580,000 cars last year, up about 23% from a year earlier. Its sales, he said, exceeded the joint ventures’ combined capacity to produce 560,000 vehicles a year, prompting it to build a second plant in Wuhan.

Mr. Ito said Wednesday that he expects overall Honda sales in China this year to grow to more than 630,000 vehicles, or up about 10% from 2009. “China is one of our most important markets in the world,” he said at a press conference in Wuhan


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