Honda Establishes Indonesian Joint Venture to Make Engines

10/25/96

Nikkei English News has reported that Honda Motor Co. has set up a joint venture to make general-purpose engines in Indonesia with its local sales agent Pt Wajamakmur Mandiri. The firm will be called Pt Sinar Honda Jaya and will be capitalized at about 230 million yen, with Honda holding 60%.

Pt Sinar Honda Jaya, which will make generators and pumps as well as engines, plans to begin production next June. It has set initial production goals at over 100,000 engines per year. The venture plans to sell engines in Indonesia at first, but will later export some to neighboring countries.

The Pt Sinar Honda Jaya plant will be constructed on the outskirts of Jakarta and will employ a staff of 70 workers. The facility will be the fourth manufacturing base for multipurpose products in Asia that Honda has established outside of Japan. It follows facilities in Thailand, India and China.

Paul Dever -- The Auto Channel