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Honda to build fourth motorcycle plant in Indonesia MINATO, Japan - Honda Motor Company has announced that its joint venture company in Indonesia will be building the fourth motorcycle plant in the Asian country to satisfy rapidly increasing market demands.

The plant, operated by Indonesia's PT Astra Honda Motor, is to be constructed at the Bukit Indah Industrial Park which is located about 70 kilometers (43 miles) east of Jakarta, the country's capital. It will produce scooter models exclusively.

According to Honda, the plant is expected to have a production capacity of 1.1 million units per year and is expected to begin operations in the autumn of 2013. Along with the other three plants, PT Astra Honda Motor will reach an annual production capacity of 5.3 million units.

The investment amount for the new plant is approximately 3.12 trillion Indonesian rupiah ($340 million) and will employ approximately 3,000 new workers, bringing the total number of employees in Indonesia to around 21,000.

Aimed to be an environmental green plant for employees, community and natural environment, the company said the plant is planned to have a reduction of CO2 emissions, utilization of the natural power sources by wind power generator and solar power generator, and adoption of automation.

Indonesia is the world's third-biggest motorcycle market after China and India, and demand is expected to increase on the back of steady economic growth in the country. The total market of motorcycles in Indonesia reached 8 million units in 2011, the highest number ever.

PT Astra Honda Motor sold around 4.27 million units in 2011, the highest volume in its history and up 25 percent compared to the previous year. For 2012, the total market is expected to be expanding approximately 8.7 million units, while the company is expecting to sell around 4.8 million units. Honda's motorcycle production capacity in the Asia Oceania region is currently 11.5 million units per year.



Posted in General @ 13 March 2012 18:55 CET by Blog Bot · 'Blog' RSS feed · permalink






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