Carmall.com - PT Honda Prospect Motor (HPM) had begun the building of their second plant in Indonesia by holding the Ground Breaking Ceremony in Karawang, West Java, June 4^th 2012. With the construction of the new factory, Honda will increase their production capacity from 60.000 units per year to 180.000 units per year.

That expectation is not impossible to achieve, because Honda had funneled a Rp. 3.1 trillion of fresh fund (around ¥ 27 M / USD 329 million) to invest on the new factory construction project as well as for the supporting facilities. "We considered Indonesia as one of the most important markets for Honda. This country has massive potential for automotive industry", revealed by President, Chief Executive Officer and Representative Officer, Honda Motor Co., Ltd.

The current Honda Prospect Motor plant is located in the Mitrakarawang Industrial Site (Kawasan Industri Mitrakarawang/KIM), Desa Parungmulya, Karawang, West Java, with total land area of 512.500 m², and total building area of 97.575,79 m². The plant is a manufacturing base for Honda's flagship products in Indonesia such as Honda Jazz, Honda CR-V and Honda Freed.

While for the new plant's location site will be built just right behind the current one with total building area of 95.000 m². This new plant is estimated to be employing 2.000 to 5.000 new employees - currently total number of Honda employees is 3.600 people - this is deemed to be in accordance with the government program to cut back unemployment rate.

Honda's new plant will be carrying production facilities such as; Stamping Press, Welding, Painting, Assembling, Vehicle Quality, Road Test, Car Pool and Engine Plant. The factory will also be used to produce vehicle components like Cylinder Head, Cylinder Block, and body parts that include the following; Hood Comp, Panel RR Inside, R/L Inside, Skin Hood, Frame Hood. It will be manufacturing Honda Freed units that will be shipped to countries in Southeast Asia; Thailand, Malaysia, Singapore, and Brunei Darussalam.