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Friday, 29th February 2008
In Business In Japan,

Honda announces plant closure plans

Automotive company Honda has announced plans to close a plant in the US and transfer work to Japan.

The company's US plant, constructed in Ohio in 1979, is to be closed when current production runs end in 2009 - operations will then be transferred to a plant on the island of Kyushu.

Currently, the Ohio plant produces VTX cruiser and Gold Wing touring motorcycles.

"This move allows us to improve the competitiveness and appeal of our products by applying the latest technologies and production systems at one efficient location," said Akio Hamada, president and chief executive of Honda in America.

Jan Gansheimer, the plant's manager, added: "There were a lot of people who felt disappointment."

However, Honda has stressed that none of the plant's 450 employees will lose their jobs.

Instead of working on the production of motorcycles, the employees will instead focus on the production of engines, parts, cars and trucks.

Established in 1948, Honda has its headquarters in Tokyo.

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