Honda Officially Breaks Ground for New $550m Indiana Plant

By: KatieJones

The Honda Motor Co., Ltd. earlier held an official groundbreaking ceremony for its new plant in Indiana. The $550 million-worth Honda plant dubbed as the Honda Manufacturing of Indiana, LLC (HMIN) will build the popular fuel-efficient Civic sedan.

The new Honda plant has 2,000 associates to take care of the Civic sedan production which is scheduled to begin in the fall of next year. HMIN will be managed by Yuzo Uenohara, its first president. Uenohara is the former senior vice president at Honda Manufacturing of Alabama, LLC.

"In Indiana we will create an efficient and flexible manufacturing environment that is a great place for everyone to work," said Koichi Kondo, the president and CEO of American Honda Motor Co., Inc., and chief operating officer of Honda's North American Regional operations. "In this way, we are breaking ground for more than an auto plant. We are breaking new ground in our relationship with the people of Indiana and our customers in America."

The automaker has first announced its plan to build the new plant on June 28, 2006. The plant is intended to cater to a total production capacity of 200,000 vehicles per year. This move is aimed at meeting the growing customers demand.

The site preparation for the plant is complete and the construction has started on a 1,700-acre tract in Decatur County, Indiana. The place is near Greensburg, which is 50 miles southeast of Indianapolis.

HMIN is the automaker's seventh plant in North America. It will also be part of the 17 major Honda manufacturing facilities in said territory. The plant is expected to bolster Honda's total North American production capacity from 1.4 million units to over 1.6 million by next year. The plant is expected to hold more than 37,000 associates. Additionally, it is intended to boost the North American capital investment to over $9 billion.

"Over the years, we will ask the associates of Honda Manufacturing of Indiana for their ideas to make our products better and the plant the safest place it can be," said Uenohara, the new president of Honda Manufacturing of Indiana. "This is the Honda way and this spirit will guide us at Honda Manufacturing of Indiana."

Major production processes at the new Indiana plant will cover stamping, welding painting, plastic injection molding, sub-assembly as well as final assembly operations of and other auto accessories. For the 2009 Civic sedan, the automaker is featuring the fuel-efficient four-cylinder engines built in Anna, Ohio. However, the vast majority of Honda Civic auto parts will be manufactured by the automaker's current base of over 600 North American suppliers. In 2006, Honda has acquired over $17.6 billion in parts and materials from suppliers in North America.

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