Honda has said it will make a significant commitment to limit the environmental impact of the new Indiana plant by advanced methods of energy and emission reduction with the goal to become a "zero waste to landfill" factory.

"Our commitment to the environment is not based just on regulations or testing standards," said Akio Hamada, president of Honda of America Mfg. Inc., and head of Honda's manufacturing operations in the North America Region.

"Our goal is that this plant in Indiana will have the smallest environmental footprint of any Honda auto plant in North America."

Investment incentives from the state are in the form of improved infrastructure and funds to train new associates.

Honda first announced its plan to build a new auto plant as part of its May 17 announcement for the advancement of the company's "2010 Vision" for its global operations.

As far as North America is concerned Honda also plans to build a new engine plant in Canada, with an investment of US$140m by 2008, and extend its existing powertrain plants in Ohio and Georgia with an investment of US$125m.