Dongfeng-Honda automobile joint venture announces bigger annual production capacity

China's Dongfeng Motor Corp. announced Monday its annual output of the Dongfeng Honda Automobile (Wuhan) Co., Ltd., a joint venture between Dongfeng and Honda, to increased to approximately 120,000 vehicles by early 2006 from the current 30,000 so as to meet a growing demand in China.

With an investment of 2.8 billion yuan (about 340 million US dollars), the expansion plan will cover three-time floor space enlargement of its existing factory building, large-scale plant layout improvement and addition of new, advanced painting workshops, punching work procedures and resin shaping technological processes as well as the institution of a research and development center, according to Liu Yuhe, deputy general manager of the Dongfeng-Honda joint venture, based in Wuhan, capital of central China's Hubei Province.

Upon the completion of the expansion plan, the floor space of the factory building will expand to approximately 181,000 square meters from the current 50,000 sq m. And the Dongfeng-Honda will have a workforce of 2,800 by 2006 as against its present 930.

Dongfeng and Honda each owns a 50 percent stake of the joint venture, which was founded in July, 2003, with a registered capital of 98 million US dollars. The joint venture now boasts such working procedures as welding, painting, production of engines, assembly and tests of finished vehicles.

The joint venture, which began producing Honda CR-V sport utility vehicles in April this year, will add new models including Civic compact to cope with the growing demand on the Chinese market in future.

Honda has another plant, based in Guangzhou, capital of south China's Guangdong Province, with an annual production capacity of 240,000 vehicles.



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