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Guangqi Honda Begins Construction Of Third Car Production Line And A New Engine Plant

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TOKYO, JAPAN – May 30, 2013: Guangqi Honda Automobile Co., Ltd. (GHAC), a car production and sales joint venture with Honda in China, has celebrated the start of construction of a third production line and an engine plant within the property of the existing ZengCheng Plant. The official ceremony was attended by dignitaries, guests and representatives from the local governments of Guangzhou, Guangdong Province as well as Honda executives including Takanobu Ito, president & CEO; and Seiji Kuraishi, chief operating officer for regional operations in China.

By expanding production capacity in the growing car market in China, Honda will further strengthen its ability to deliver new products for Chinese customers, with speed, affordability and low CO2 emissions.

The new environmentally-responsible and energy-saving production line, will include a solar power generation system with a 10,000 kilowatt-capacity, the largest capacity solar power generation system installed by a car manufacturer in China. The state-of-the-art line will also feature a highly efficient laser welding machine for the stamping plant and an advanced painting technology which will significantly reduce the number of painting processes.

The third line is scheduled to become operational in 2015, with an initial annual production capacity of 120,000 units. GHAC is planning to expand the capacity up to 240,000 units in the future. When the third line becomes operational in 2015, GHAC's overall annual car production capacity will be increased from the current 480,000 units to 600,000 units, increasing Honda's overall annual automobile production capacity in China from the current 870,000 units to 1.01 million units.

The total investment for the third line (with capacity expandable up to 240,000 units) and the new engine plant is expected to be approximately 3.56 billion R.M.B. (approximately 59.3 billion yen).