| WUHAN, China – Dongfeng Honda Automobile (Wuhan) Co (WDHAC), the car production and sales joint venture of Honda and Dongfeng Motor in China, have announced plans to expand its annual production capacity from the current 30,000 units to 120,000 units by early 2006. The construction to expand the existing plant is planned to begin within this year, with total investment expected to be approximately 2.8 billion RMB (approximately 36 billion yen.) The plant will employ approximately 2,800 associates at full capacity.
Major construction activities to expand the annual capacity to 120,000 units will include more than tripling the size of plant buildings, major changes in facility layout, building a new painting facility, adding processes of stamping, plastic injection moulding, engine parts processing, in addition to upgrades of existing equipment and processes. Further, WDHAC will strengthen its R&D operations. Through this expansion, the WDHAC plant will adopt Honda's flexible New Manufacturing System to achieve Honda's global standard for advanced levels of quality, efficiency and flexibility, as well as Honda's "Green Factory" concept.
WDHAC began production of the Honda CR-V in April this year by renovating and upgrading the former Wuhan Grand Motor facility. The existing plant has welding, painting, assembly and final inspection lines, with an annual production capacity of 30,000 units.
Dongfeng Honda will continue to meet the growing needs of the Chinese market by adding new models into production, including the Honda Civic, when the capacity is increased to 120,000 units.
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