Dongfeng Honda to start up capacity expansion

Dongfeng Honda Automobile Company Limited, a Wuhan-based venture of Honda Motor Co., Ltd. of Japan, will begin to enlarge its production capacity to 240,000 cars in July 2008.

The venture, which has made 300,000 cars since its establishment in 2003, will spend USD 200 million in the expansion project, which is expected to kick off this July and to be put into production in mid 2009.

The project is situated at the venture's factory in Wuhan Economic & Technological Development Zone and covers a construction area of 68,708 square meters, boosting the venture's total construction area to 266,001 square meters.

240,000 passenger cars including SUV model CR-V, medium- grade sedan model Civic and other new car models can be produced every year, doubling the current capacity. The capacity of related engines will also be raised.

Honda Motor will have total annual production capacity of 650,000 cars in China, up 20%, after the expansion is finished.