Honda Automoveis do Brasil (HAB), an automobile production and sales subsidiary of Honda in Brazil, has commenced the construction of its new BRL1bn ($435.8m) automobile production plant in Itirapina in the state of Sao Paulo.
The total investment includes the acquisition of 5.8 million square meter site and the purchase of equipment and construction of the plant building.
To be operational in 2015, the new production plant will have an annual capacity of 120,000 units.
The new plant, along with the existing plant in Sumare, will enable the company to double its production from the current 120,000 units to 240,000 units.
HAB will produce the all-new Fit vehicle at the new plant, and plans to increase the model line-up for production of Fit-class compact vehicles.
The company will employ shorter production processes and introduce the latest technologies in the painting process to address environmental concerns. It will employ 2,000 associates at the new plant.
Besides this, the automaker is also establishing a new automobile R&D center within the existing plant in Sumare, in order to strengthen its local development capabilities in Brazil. It will start full-scale operations by the end of this year.
The new R&D center will enable Honda to deliver more products developed to accommodate the needs of local customers in Brazil.
Honda Motor president & CEO Takanobu Ito said: "We are building up our local R&D capabilities, and together with this new auto plant, we will continue to deliver products 'with speed, affordability, and low CO2 emissions' that exceed the expectations of our customers in Brazil."
