Suzuki Motor has retracted a plan to build an industrial park for parts suppliers for its Sagara plant in Makinohara, Shizuoka Prefecture, citing the yen’s steep appreciation as a reason for the decision.
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Suzuki began producing export vehicles at the plant in July 2008. Expecting an increase in exports from the plant, the company decided to build an industrial campus on a land lot straddling the common border of Makinohara and Omaezaki cities. Several suppliers have already decided to launch production there.
But Suzuki has given up the plan due to slowed global demand for automobiles since the so-called Lehman shock in autumn 2008 and the yen’s recent appreciation that acts as a drag on exports. It has large overseas plants in both India and Hungary.
The project was originally due to be completed in 2014 at a cost of JPY4.8bn, according to the company.
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By GlobalData
