Honda Automobile's Chinese joint venture, Guangqi Honda Automobile (GHAC) has started the construction of a third production line in Guangzhou, Guangdong Province with an investment of CNY59.3bn ($581m).
The new production line will include new painting technology, which is expected to reduce the number of painting processes along with laser welding machine for the stamping plant.
Located in the vicinity of the current ZengCheng Plant, the new facility will include a solar power generation system, which will be having a production capacity of 10,000kw.
Scheduled to become operational in 2015, the new line will have an initial production capacity of 120,000 units per year, while the company also plans to further expand the capacity to about 240,000 units in the future.
With the expansion, Honda expects to strengthen its ability to deliver new products for the Chinese market that would offer speed, affordability and low CO2 emissions.
Following the completion, the line will increase the production capacity of the company to 600,000 units per year from the current 480,000 units that will elevate Honda's annual automobile production capacity in China from the 870,000 units to 1.01 million units per year.
