Honda outlines three focus areas for its auto production in Japan

RP news wires

In the face of a global trend toward consumer preference for smaller vehicles as well as increasing environmental awareness, Honda has reviewed the increasingly important role to be played by its production plants in Japan and determined three areas of focus.

Yorii Auto Plant

1)	Pursuit of advanced manufacturing technologies for environmentally-responsible products and small-sized vehicles.
2)	Efficient production of the products to be sold in Japan.
3)	Strengthening the support functions for Honda plants outside of Japan.

Based on this determination of the focus areas, the direction was determined for the two new plants in Japan where plans have been pending.

Yorii plant in Saitama
The Yorii plant will be indispensable in Honda's effort to strengthen cost and quality competitiveness and to establish the necessary and highly sophisticated next-generation manufacturing technologies for the production of environmentally-responsible products and low CO2 emissions production. Further, the plant will take the lead to evolve such manufacturing technologies to other Honda production operations around the world. As a result, Honda will resume preparation of the Yorii plant with a goal to begin production in 2013.

The Yorii plant will create new value and innovative technologies that can be achieved only at the Yorii plant and lead other Honda plants around the world as a state-of-the-art, next-generation plant which pursues energy efficiency while being at the forefront in the area of the environment.

The Yorii plant will start with small-volume production of environmentally-responsible vehicles which require highly sophisticated manufacturing technologies in order to mature its advanced technologies, then it will gradually increase production volume. The Yorii plant will then evolve such manufacturing technologies, that are a key to the next-generation of Honda, to other Honda operations around the world to achieve the global growth of Honda.

Starting mini-vehicle production at the Suzuka Factory and cancelling the construction of a new Yachiyo plant in Yokkaichi
To accommodate the global shift toward smaller vehicles, Honda will begin production of mini-vehicles at its Suzuka Factory in 2012. Through mini-vehicle production at Suzuka Factory, Honda will establish manufacturing technologies that will contribute to the effort to reduce the bodyweight and cost of Honda’s next-generation models. Such manufacturing technologies will be applied to small-sized vehicles, and then evolved from Suzuka to other Honda production operations around the world.

Based on this decision, Yachiyo Industry decided to cancel the planned construction of a new Yachiyo plant. The mini-vehicle production at Yachiyo’s existing plant will be continued.

About the Yorii Plant

Location:	Tomita, Yorii-machi, Osato-gun, Saitama (2 kilometers from Ogawa engine plant)
Lot size:	Approximately 980,000 square meters (m²)
Start of operation:	2013
Employment:	Approximately 700 associates (at the time of start-up)

About Yachiyo Industry Company Ltd.

Established:	August 1953
Capital:	JPY 3,685.6 million (50.34% Honda Motor Company Ltd.)
Head office location:	Sayama, Saitama
Representative:	Masaaki Kato, president and CEO
Business:	Production and sales of automobile parts Production of automobiles (Honda mini-vehicles: Life, Zest, Vamos, Vamos Hobio, Acty Truck, Acty Van)
Major Operations:	<Japan> Saitama (Sayama), Mie (Suzuka, Yokkaichi, Kameyama), Tochigi (Sakura) <Overseas> U.S., Canada, Thailand, China, India, Brazil