Honda plans new plant in Thailand
Honda Motor Co has decided to build another automobile factory in Thailand, likely in the southeastern part of the country where the risk of flooding is lower than where its existing plant is located, The Nikkei reported.
Quoting company sources, the news agency said that Honda wants to bring the new plant, which is expected to have an annual production capacity of 120,000 vehicles, online as early as 2015.
With its assembly plant in Ayutthaya, located right in the flood-prone Central Region, Honda's plant with capacity of 240,000 vehicles a year was submerged in flood water in October last year. The plant was re-opened on Monday and the official re-opening ceremony will take place on March 31 with the presence of Prime Minister Yingluck Shinawatra.
The Nikkei went on that Honda is expected to acquire a plot as early as next month. The existing plant in Ayutthaya is to continue operations. The new plant might churn out such models as large minivans, for which demand is projected to grow in Thailand.
Despite concerns of flooding, Thailand remains an outstanding manufacturing site because of the concentration of materials and parts suppliers and its strong infrastructure. Other Japanese carmakers, including Toyota Motor Corp and Isuzu Motors Ltd, are also moving to boost output in Thailand.
Honda’s production in Thailand fell by about 120,000 vehicles due to the floods. Because the Thai plant also served as an export base for parts, its suspension impacted production in such regions as Japan and North America, pushing down global output by 260,000 units.
