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Honda Expands Production of General-Purpose Engines in North Carolina

8 September 2000

Honda Expands Production of General-Purpose Engines in North Carolina

        Production Capacity Increasing Three-Fold to One Million Units

    SWEPSONVILLE, N.C., Sept. 8 Honda Power Equipment Mfg.,
Inc. (HPE) today passed an important milepost toward becoming a volume
producer of high-quality engines, as the first of what will soon become one
million general-purpose engines per year left HPE's newly-expanded assembly
line.
    Honda is the world's largest engine manufacturer, producing more than
11 million engines annually for its three product lines -- automobiles,
motorcycles and power products -- and for sale to other manufacturers.
    "Over the past few years, we have focused on increasing the speed,
efficiency and flexibility of our company," said Koichi Amemiya, president and
CEO of American Honda Motor Co., Inc., as he addressed Honda associates and
guests assembled at the HPE engine line off ceremony.  "But our ultimate
challenge is meeting the needs of our customers.  And the goal of customer
satisfaction is the reason you have undertaken such great change here in North
Carolina."
    In April 2000, HPE announced it would triple its annual production
capacity from 300,000 general-purpose power equipment engines to one million
units by October 2000 and create up to 50 new jobs, with a total new
investment of $16 million.  The facility's general-purpose engines will be
produced using domestic and globally-sourced parts.
    "HPE's role in today's expanding power equipment business has dramatically
increased," said Shigeru Nakamura, president of HPE.  "While we used to make
lawn mower engines at this facility, our evolution into a manufacturer of one
million general purpose engines is significant and historic."
    In June, Honda began production of GC 160 series engines to be used in
Honda lawn mowers and sold to original equipment manufacturers (OEMs) for use
in a range of equipment including, but not limited to, water pumps, pressure
washers and generators.  Assembly and machining of the new engines began in
June 2000, and die casting in August.  HPE remains on target to reach its
annual production capacity of one million units by October.
    HPE currently employs more than 335 associates at its 142,000 square foot
facility, representing an existing investment of $66 million.  HPE has
produced more than one million lawn mowers and over one million engines since
it opened in August 1984.  Honda R&D Americas, Inc. also maintains its North
Carolina R&D Center adjacent to HPE in Swepsonville.
    Honda designs, manufacturers and markets its products in North America and
worldwide.  Honda currently builds products in nine North American
manufacturing plants, with three major research and development centers in the
U.S.  Honda employs more than 20,000 associates in North America.