Honda Expanding China Output With Local JV Partner
The JV’s annual capacity will rise from 480,000 units to 600,000 when the new line begins operating, and Honda’s total capacity in China will increase from 870,000 units to 1 million.
Guangqi Honda begins construction of a third production line and an engine plant at its ZengCheng facility in Guangzhou, China.
Guangqi Honda, a 50-50 joint venture between Guangzhou Auto Group and Honda, estimates the total cost of the project at RMB3.6 billion ($580.5 million).
The new assembly line, scheduled to launch in 2015, will have initial annual production capacity of 120,000 units and can be expanded to double that number. When it becomes operational, Guangqi Honda’s overall annual capacity will rise from 480,000 units to 600,000. It also will increase Honda's total capacity in China from 870,000 vehicles to 1 million.
Honda says in a statement the energy-saving production line will include a solar power-generation system with a 10,000-kW capacity, the largest such system developed by an auto maker in China.
The production line will feature a high-efficiency laser welding machine for the stamping plant and an advanced painting technology that will reduce considerably the number of paint processes.
“By expanding production capacity in the growing car market in China, Honda will further strengthen its ability to deliver new products for Chinese customers, with speed, affordability and low carbon-dioxide emissions,” the auto maker says.
Honda President and CEO Takanobu Ito attended the ceremonies marking the start of construction at the plant, located 1,345 miles (2,155 km) south of Beijing.
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