Joint venture Guangqi Honda Automobile (GHAC) has started construction of a third production line and an engine plant within the existing ZengCheng plant site.

The third line will include a 10,000 kwh solar power generation system, new technology, which significantly reduces the number of painting processes, and a laser welding machine for the stamping plant.

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It is scheduled for operation in 2015 with initial capacity of 120,000 units but GHAC plans expansion to 240,000 units.

GHAC’s overall capacity will be increased from the current 480,000 units to 600,000 units, increasing Honda’s capacity in China from 870,000 now to 1.01m.

Total spend on the third line (240,000 capacity) and the new engine plant is expected to be around RMB3.56bn (JPY59.3bn).

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