Honda affiliate F-Tech will begin making suspension parts and other vehicle components in Guangdong, China, from next year, according to the website AutoAsia Online.

The report says F-Tech holds a 73.2% stake in a venture with local interests and trading company Nichimen Corp which will build a $16 million factory due to start output in January.

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AutoAsia Online said Honda would be F-Tech#;s main customer but it hopes to sell to other Chinese vehicle makers.

F-Tech is planning to turn over about $US28 million in China by fiscal 2005/06, the report added.

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