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Honda again denies rumors it plans to relocate its Thai operations, saying the country will remain the major base for Asia and Oceania vehicle production.

Honda Thailand executives recently held a news conference to respond to persistent reports they are moving the business to Indonesia, where the auto maker has announced intentions to build a $337 million second plant.

Honda halted Thai operations last October after massive floods swept through its 240,000-unit-a-year plant. It is scheduled to reopen March 26.

The Nation newspaper quotes Honda Thailand executives as saying expansion of the auto maker’s production capacity in Indonesia was in place well before the flooding hit Thailand.

“Honda has put considerable effort into restoring its Ayutthaya manufacturing plant to resume production,” the auto maker says in a statement. “The company is now ready to start up the production line and continue its commitment to growing with Thai society.”

The newspaper reports Thai Industry Minister Pongsvas Svasti also denies Honda is relocating to Indonesia.

Pongsvas says Honda's new Indonesian factory will serve domestic demand there, while Thai production will serve both the local and export markets.