Honda to expand Karawang plant

Honda to expand Karawang plant

JAKARTA: Japanese carmaker PT Honda Prospect Motor (HPM)
announced on Tuesday that it would expand its production
facilities in Karawang, West Java, following increased demand
last year that saw sales more than double compared to 2003.

The US$5 million expansion is for the welding and painting
production lines and expected to boost its production from 40,000
units to 50,000 units per year.

PT HPM sold 21,650 vehicles in 2003 but the number skyrocketed
to 46,500 units last year. The company expects to sell 53,000
units, or 10 percent, of the projected market this year.

"The $5 million investment is aimed at fulfilling high
customer demand for our vehicles. On-time delivery is one of our
commitments to the Indonesian market," PT HPM president director
Kenji Otaka said in a media statement.

PT HPM's plant in Karawang was built with an investment of $70
million and employs 2,300 workers. It has a total area of 80,000
square meters of factory space. -- JP