Honda to Spend 44.6 Billion Yen to Build New Factory in ThailandAnna Mukai
Honda Motor Co., Japan’s third-biggest carmaker, will build a new factory in Thailand after its 2012 vehicle sales reached a record in the Southeast Asian country.
The Tokyo-based carmaker will invest about 44.6 billion yen ($476 million) to open a factory with an annual production capacity of 120,000 units, it said in a statement today. Honda plans to begin operations at the plant in 2015 and build models such as the Civic compact and Accord sedan.
Honda’s move to add capacity in Thailand comes as the automaker sold a record 171,208 units in the country last year, after recovering from the record flooding in the country that disrupted production in 2011.
Honda rose 3.3 percent, its biggest gain in more than a month, to close at 3,580 yen today. The benchmark Nikkei 225 Stock Average added 3.8 percent and closed at its highest level since September 2008.
Separately, Suzuki Motor Corp. said today it plans to begin production of vehicles in Myanmar in May, after getting permission from the nation to form a subsidiary in the country.
-- Editors: Aaron Clark, Chua Kong Ho