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Honda to build new automobile production plant in Brazil doubling annual production capacity to 240,000 units in 2015

Honda Automóveis do Brasil Ltda. (HAB), the Honda automobile production and sales subsidiary in Brazil, plans to build a new automobile production plant with annual production capacity of 120,000 units. The new plant, scheduled to become operational in 2015, will produce Fit-class compact vehicles, for which demand is high on a global basis.

The new plant will be located in the city of Itirapina in the state of São Paulo (approximately 200km northwest of the city of Sao Paulo), which is approximately 100 km northwest of HAB’s existing plant in the city of Sumaré. Including the acquisition of the 5.8 million m2 site, purchase of equipment and construction of the plant building, the total investment for the new plant is expected to be approximately 1 billion Brazilian Reais (US$434 million).

Combining the production capacity of the new plant with the existing plant in Sumaré, HAB’s total annual automobile production capacity will be doubled from the current 120,000 units to 240,000 units. Moreover, with the goal to strengthen local development capabilities in Brazil and to enhance parts localization, Honda is establishing a new automobile R&D center within the plant in Sumaré before the end of this year.

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