Mazda to reopen Hiroshima plant to up output

NEW YORK, Oct 2 Reuters reported that Mazda Motor Corp. plans to reopen a plant in Hiroshima in western Japan to back up other factories now running at high capacity as a wave of new models is rolled out, a Japanese newspaper reported.

Mazda, Japan's fifth-largest automaker, will produce the latest Familia subcompact at the No. 2 Ujina plant for Japanese and foreign markets, replacing its original plan for production in Europe, the Nihon Keizai Shimbun's Thursday online edition said.

The plant, which was closed last September, will also likely take up production of Mazda's Bongo series and fully remodeled subcompact Demio. It will crank out 200,000 vehicles a year when it reopens as early as next year, the report said.

The paper also said Mazda's restructuring measures such as staff cuts were taking effect, helping bolster its balance sheet.

Its domestic facilities such as the No. 1 Ujina plant, also in Hiroshima Prefecture, and its Hofu plant in neighboring Yamaguchi Prefecture have been running at high gear, the paper said.