MALAYSIA: Body shop heralds Mazda assembly plans
Mazda Motor is buying a body shop from local assembly contractor Inokom Corporation and will soon use it in its own plant.
Inokom established the body shop at its plant in Kulim, in the Malaysian state of Kedah with operations begun in April 2013.
"Acquiring ownership of the facility will allow Mazda Malaysia to respond to production plan changes and implement quality control measures quickly and flexibly. The purchase process has begun and is expected to be completed before the end of the year," the automaker said in a statement.
Construction of Mazda Malaysia's assembly facility, at the same location as the body shop, started last month and should be in operation next spring of next year. CX-5 assembly, currently at Inokom's factory, will then be moved to the new factory.
Mazda is spending about 100m ringgit (JPY3bn) on improving Malaysian assemblyand expects output to increase to around 20,000 units a year.
Mazda director Yuji Nakamine said: "We regard Malaysia as a key base in the ASEAN region."
Mazda also assembles the 3 in Malaysia. CX-5 sales began in May and 3,000 units of each a year are currently planned.