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Suzuki to build new engine plant in Indonesia

ABR Staff Writer Published 05 January 2012

Japanese car-maker Suzuki Motor will build a new JPY30bn ($390.9m) engine plant in Indonesia, as part of a plan to increase output of small four-wheel vehicles in the growing Southeast Asian market.

The car and motorcycle maker has invested JPY10bn ($130m) on a 1.3 million sq m site in an industrial park outside Jakarta for its third Indonesian factory.

Further, the car-maker is also investing JPY20bn ($260.38m) to upgrade its existing automobile assembly lines.

The new manufacturing facility will be capable of producing 100,000 units annually and is part of a JPY60 billion ($779 million) expansion project.

The new engine plant will commence production in late 2014 and is expected to triple the current engine capacity in the country to 150,000 engines a year.

The automaker also announced plans for a third Indian auto plant, and also for a second plant in Vietnam.