Honda Malaysia Doubles Production With New Line
The automaker plans to roughly double its use of locally sourced parts to make its cars more affordable for Malaysians.
Honda Malaysia opens a second production line at its plant in Malacca, doubling its output to 400 units a day or 100,000 a year.
The 30,000 sq.-ft. (49,200 sq.-m) No.2 Line at its Pegoh factory comes 11 years after the No.1 Line began operations. The expansion creates 700 jobs.
Honda Malaysia Managing Director and CEO Yoichiro Ueno says the new line cost 382 million ringgit ($115.2 million), covering building, equipment and facilities.
“This investment is crucial in strengthening our operations in order to meet our midterm goal of achieving 100,000 units (of) sales by 2016,” Ueno says in a statement.
The second line has a number of new technologies, including an automated smart-welding machine and a state-of-the-art painting facility including spray robots and underbody coating.
“To achieve more affordable prices for Malaysian customers, Honda Malaysia is targeting to enhance the localization of the component parts from the previous 30%-40% to more than 70% in the near future,” Ueno says.
Asian Honda Motor President and CEO Hiroshi Kobayashi says Honda’s business in Malaysia has grown rapidly over the past 10 years.
“Honda looks to further develop our local production in Malaysia by taking a more strategic approach to the industry,” Kobayashi says. “By developing skilled local capabilities and implementing advanced manufacturing technologies in this attractive and important market, we are positive that Malaysia will help achieve the long-term growth of the Honda brand.”
With the opening of the No.2 Line, Honda plans to boost production for the expanding Malaysian market, particularly in the small-car and hybrid segment, which has grown steadily in recent years.
The plant assembles the City, Civic, CR-V, Accord and both the Jazz gasoline and hybrid variants.
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