Suzuki Motor Corp said today it will build a plant to produce engines in Indonesia as part of its plan to raise four wheel vehicle production to more than 100,000 units per year in the country.

In an effort to boost production in the growing market and increase local procurement on the back of the strong yen, the company plans to invest some JPY 30 billion (USD 390 million) to open the plant in 2014 with annual capacity of about 100,000 engines.

Suzuki currently produces 50,000 engines in Indonesia.

The company has acquired a 1.3 million square meter site for the plant for JPY 10 billion. All the engines manufactured at the plant as well as existing plants will be used for four wheel vehicles produced locally, according to the company.

Suzuki, which has an annual production capacity of 80,000 four wheel vehicles and 1 million motorcycles in Indonesia, said it will invest an additional JPY 20 billion to expand four wheel vehicle production in the country.

(Sourced from BL)