Japan’s third-largest automaker Honda Motor said Tuesday it will build a new motorcycle factory in Indonesia that will produce about 1.1 million bikes a year to meet growing demand in the country.
The new plant, operated by Honda’s local joint venture partner PT Astra Honda Motor, will cost about 3.13 trillion Indonesian rupiah ($341 million) and add 3,000 new jobs, it said.
Designed to meet growing demand, the facility at an industrial park 70 kilometres (43 miles) east of Jakarta is the fourth operated by Honda’s Indonesian partner, the automaker said.
It will bring the joint venture’s operating capacity to 5.3 million units annually.
Honda said the new factory, scheduled to open next year, was necessary “in order to satisfy the vigorous demand” in Indonesia.
“The motorcycle market of Indonesia is the world’s third-biggest next to China and India, and the further expanding demand is expected on the back of the steady economic basis in recent years,” Honda said in a statement.