In order to keep up with the growing demand for motorcycles in Malaysia, Boon Siew Honda and Oriental Holdings Berhad will build a second motorcycle factory. The $60 million factory will be built in Penang, about 12 miles south of the existing factory.
The new motorcycle manufacturing facility is expected to be up and running by 2013. Honda expects to churn out more than 350,000 units a year from the new production plant.
Honda said in a press release:
"The motorcycle market in Malaysia experienced a brief decline due to the impact of the global economic recession in 2009. However, the market quickly recovered, and industry-wide sales in 2010 reached 487,000 units, a 8.2% increase compared to 2009.
"Continuous growth is expected for the motorcycle market in Malaysia where there is steady demand for motorcycles as a mode of transport in people's daily life. In this context, Boon Siew Honda made the decision to build a new plant and transfer the existing production in order to further strengthen its ability to provide high-quality products to its customers in a timely manner."
Honda has produced 4.23 million units since it began producing motorcycles in Malaysia in 1969. Last year, Honda accounted for 45% of the market share.
