Honda to Double Automobile Engine Component Production Capacity in Thailand

Tokyo, Japan, July 20, 2005; JCN Newswire reported that Honda Motor Co., Ltd. today announced plans to double production capacity at the engine plant of Honda Automobile (Thailand) Co., Ltd. (HATC), a Honda automobile production and sales subsidiary in Thailand, from the current 150,000 units annually to 300,000 units in the spring 2006. Total investment for this expansion plan is expected to be approximately 4 billion yen.

Processes conducted at the HATC engine plant currently include molding and machining of the cylinder block and machining of the cylinder head, both key components of an engine. These components are supplied domestically in Thailand as well as to Honda operations in other ASEAN and South West Asian countries. With this plan to double capacity, the plant building will be expanded to accommodate a second machining line and molding processes for the cylinder head to achieve integrated production of the cylinder block and cylinder head.

Moreover, the HATC engine plant began production of cylinder sleeves this month with introduction of a "spin cast" production process that does not require sand casting. Thailand became the third country, after Japan and the U.S., where Honda has introduced this spin cast method.