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06. September 2010

India - Suzuki Motors scraps plan to build autoparts park

Suzuki Motor Corp said that it has canceled a project to develop an industrial park for affiliated autoparts makers near its Sagara plant in Makinohara, Shizuoka Prefecture.

The plant manufactures export model automobiles. Due to sluggish demand, the facility has been operating at under 50% capacity.

The yen's advance played a part in convincing the automaker to give up the project because exports will likely remain weak if the Japanese currency stays strong.

Under the original plans, Suzuki was to purchase a roughly 43 hectare plot in a location between the Sagara plant and the port of Omaezaki, from which the company's automobiles are exported. The plot was expected to be made ready for factory construction by the end of 2014.

Suzuki spent a total of 240 million yen on surveying and other preparations for the land acquisition.

Parts makers are now expected to continue supplying components to the Sagara plant from their existing factories in the western part of Shizuoka.

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