Honda to relocate Shanghai motorcycle factory

TOKYO -- Honda plans to relocate a Shanghai motorcycle plant operated by a Chinese joint venture in an attempt to improve efficiency and cut costs.

     The Japanese company will close the Shanghai plant, which is run by Sundiro Honda Motorcycle, a 50-50 joint venture with Sundiro Holding, and sell the land. It will then build a factory in Jiangsu Province at a cost of 11.4 billion yen ($104 million).

     The buildings for engine production and vehicle assembly are inconveniently separated at the Shanghai factory. But renovating or expanding the facility would be difficult because it is located in a residential neighborhood

 The new factory is slated to start operating in January 2017. Its production capacity of 600,000 vehicles a year will put it on par with its Shanghai predecessor. 

© Provided by (Nikkei)