+ Click to Enlarge SX-4 GRAND VITARA: Suzuki is experiencing increased demand from countries in Europe, North and Central America and south-east Asia.

August 10, 2006
By Kimiko de Freytas-Tamura

Tokyo, Japan - Suzuki is to build its first factory in Japan in 25 years at a cost of a half-billion dollars to help meet demand for fuel-efficient cars.

Suzuki - which is also ramping up production in India, Hungary and Pakistan - said it would build the factory in Japan's central Shizuoka prefecture, starting in the next few months.

The plant will begin operating at the end of 2008 and be designed to assemble around 240 000 compact vehicles a year.

Suzuki chairman Osamu Suzuki explained: "We have big back-orders overseas with Europe, North and Central America and south-east Asia demanding increased volumes of the Swift and SX4-Grand Vitara."

He said it had been difficult to choose the site; there were advantages to building close to existing Suzuki plants in Shizuoka.

"After much thought, building a factory in Japan was the best solution. For us, doing it 'our' way is the best way," he said.

It will be Suzuki's first compact car factory in Japan and its first new factory of any type in that country 1983. Suzuki said his company was unlikely to build more factories in Japan, although he expressed interest in Asia.

The company plans to increase production capacity in its overall overseas factories by 1 760 000 by the end of 2009.

Suzuki holds a majority stake in India's Maruti Udyog; it plans to increase production there from 630 000 vehicles in 2006 year to 960 000 in 2009.

Production at its Magyar assembly plant in Hungary will increase from 160 000 vehicles this year to 300 000 by 2008 and Suzuki plans to ramp up production at its Pakistani factory Pak-Suzuki from the current 110 000 vehicles to 170 000 vehicles in 2009.

General Motors SA has no plans to increase the presence of the Suzuki brand in South Africa - AFP

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