August 09, 2013

Honda to build new automobile production plant in Brazil

Honda Automoveis do Brasil Ltda. (HAB), the Honda automobile production and sales subsidiary in Brazil, announced plans to build a new automobile production plant with annual production capacity of 120,000 units. The new plant is scheduled to become
operational in 2015.

The new plant will be located in the city of Itirapina in the state of Sao Paulo (approximately 200 km northwest of the city of Sao Paulo), which is approximately 100 km northwest of HAB's existing plant in the city of Sumare. Including the acquisition of the 5.8-million sq m site, purchase of equipment and construction of the plant building, the total investment for the new plant is expected to be approximately 1-billion Brazilian reais (approximately 43-billion yen*). The new plant will employ approximately 2,000 associates. HAB is planning to produce Fit-class compact vehicles at the new plant, for which demand is high on a global basis.

As a part of HAB's efforts to address environmental concerns, the new plant will employ shortened production processes and introduce the latest technologies in the painting process. Moreover, HAB will strive to establish a highly efficient production system at the new plant through various approaches including making the optimum use of automation technologies.

Combining the production capacity of the new plant with the existing plant in Sumare, HAB's total annual automobile production capacity will be doubled from the current 120,000 units to 240,000 units. Moreover, with the goal to strengthen local development capabilities in Brazil and to enhance parts localization, Honda is establishing a new automobile R&D center within the plant in Sumare before the end of this year. Doubling the production capacity and developing products that accommodate the needs of local customers in Brazil, Honda will deliver more attractive products and enhance its product lineup in South America.

"As the world's fourth largest automobile market, Brazil is a very important market for Honda's operation in South America. Taking advantage of the capacity expansion, Honda will continue offering a wide range of attractive products that exceed the expectations of our customers in Brazil," said Masahiro Takedagawa, Chief Operating Officer for Regional Operations (South America) of Honda Motor Co., Ltd. and President and Director of HAB.


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