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Suzuki to build new engines plant in Indonesia

ABR Staff Writer Published 24 June 2011

Japanese vehicle manufacturer Suzuki Motor is planning to invest $800m to build an auto engine plant in Indonesia by March 2012.

The new facility will be constructed at its existing production base in West Java and the plant will have a capacity to build 100,000 engines a year.

The automaker already produces 50,000 engines a year in Indonesia and imports the rest from Japan to fulfill the demand from its local assembly operation, which produces the Swift, SX4 and APV minivan.

In fiscal 2010 the local assembly output was 75,000 vehicles, but the automaker is set to increase its annual output to 100,000 units.

The company said that the new plant will help boost local procurement, lower production costs and improve efficiency.