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Dongfeng Honda to Build Second
Auto Plant in China
Dongfeng Honda Automobile Co.,
Ltd., an automobile production and sales joint venture of Honda
in China, announced plans to build an automobile production
plant with lower environmental impact in order to meet continued
growing demand in the Chinese market.
To build the second plant, the
company is planning to acquire one million square metres of
land, approximately four kilometres from the existing plant,
within the Wuhan, Hubei Province. The new plant will be the
first Honda production plant to generate a portion of the
electricity used for production processes from solar panels
produced by Honda Soltec. The use of solar energy is expected to
lead to a reduction of CO2 emissions by approximately 500 tons a
year. In addition, the new plant will strive to achieve a
significant reduction of CO2 through other measures such as
utilisation of natural light and waste heat.
The second Dongfeng Honda plant is
scheduled to become operational in the latter half of 2012 with
annual production capacity of 60,000 units. The company
envisions the future expansion of production capacity to 240,000
units. The initial investment will be approximately 1.15 billion
R.M.B. (approximately €120 million*). The new plant will
accommodate production processes including welding, painting and
assembly and is expected to be an advanced plant utilising
production technologies refined at the existing plant, as well
as adopting new environmental technologies.
Prior to building the second
plant, Dongfeng Honda is planning to expand annual production
capacity of its existing plant from the current 200,000 units to
240,000 units in early 2010. When the second plant begins
production, Dongfeng Honda will have a combined annual
production capacity of 300,000 units. In addition, flexible
production between the two plants will enable Dongfeng Honda to
better fulfil the ever diversifying needs of customers in China.
Dongfeng Honda has been producing the CR-V
since April 2004, the Civic since 2006 and the Spirior since August
2009. The company's sales results have continued strong, with 2009 sales
of 211,000 units, up 28.2% compared to 2008, achieving a record high for
a fifth consecutive year.
When Dongfeng Honda's second plant begins
production, Honda's overall annual automobile production capacity in
China will reach 710,000 units -- 300,000 units at Dongfeng Honda;
360,000 units at Guangzhou Honda; and 50,000 units at Honda Automobile
(China), an export automobile production joint venture.
(Feb 01, 2010)