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