Suzuki Plans Engine Plant with Chinese Partner

TOKYO, Sept 17, 2003; Reuters reported that Suzuki Motor Corp, Japan's top minivehicle maker, plans to build a plant in China with local partner Changhe Aircraft Industry (Group) Corp to make one-litre automobile engines, a spokesman said on Wednesday.

The two firms have been building commercial vehicles through a joint venture in the southeastern province of Jiangxi since 1995, procuring engines from a company 3,000 km (1,860 miles) away in Heilongjiang province.

"We want to build our own engine factory nearby for better efficiency," the Suzuki spokesman said. He added the partners hoped to start production around 2005.

The spokesman declined to comment on the planned investment or how many units the plant would build. But the Nihon Keizai Shimbun, a Japanese business daily, said the factory would cost about 1-1.5 billion yuan ($120-180 million), with annual capacity of 300,000 units.