Honda has started construction of a new car plant in Thailand that will double annual capacity there to 240,000 units.


The second plant, adjacent to the current factory, should start production in the second half of 2008 and could be expanded to 120,000-unit capacity, employing 2,200, the automaker said on Wednesday.


Honda said it was making the 6.2bn Thai baht (JPY23bn; $US207.5m) investment because it expected “further growth in demand for automobiles in Thailand and other markets in the Asia/Oceania region”.


Like all new car plants, it would be what Honda calls an “environmentally-responsible facility” with a “complete water recycling system”. That means no emissions of industrial water and the use of water-based paint with reduced volatile organics compounds emissions.


Solar panels generating electricity would contribute to a 10% reduction in CO2 emissions (compared with 2005), the automaker added.

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The two plants would share production of the Accord (the larger ‘US’ model widely exported throughout Asia/Pacific, including Australia and New Zealand), Civic sedan, Jazz (Fit), CR-V and the emerging-markets-only City.