Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Honda Expansion to Create 100 Jobs in Ohio
"ATLANTA -- Honda plans to build a $100 million plant in the city of Tallapoosa, Ga., 40 miles west of Atlanta, to produce automatic transmissions as part of a broader North American Powertrain Strategy, officials announced yesterday. The plan also includes significant investments to add production of high precision gears at a Honda transmission plant in Russells Point, Ohio, and key engine components at a Honda engine facility in Alabama.In all, Honda will invest $270 million and create 600 jobs across the three states."Honda's continued growth and investment in Ohio is a testament to Ohio's workers and our business climate," said Ohio Gov. Bob Taft. "The 25-year partnership between the State of Ohio and Honda continues to grow stronger and this planto expand the Russells Point transmission operation shows how Honda is continuing to provide great opportunities for Ohio workers."The Russells Point expansion will maintain 700 jobs, Taft added.Honda's Ohio manufacturing operations include the original motorcycle plant in Marysville, automotive plants in Marysville and East Liberty, an engine plant in Anna and the transmission plant in Russells Point. Since 1979, Honda has invested $6.1 billion in its Ohio facilities and provides work for more than 150 suppliers located throughout the state, Taft said. Honda currently employs 16,000 Ohioans and supports, directly or indirectly, the employment of 128,000 state residents.For the Russells Point expansion, the Ohio Department of Development, has committed a $1.8 million Roadwork Development (629) grant for roadway improvements and a $200,000 Business Development (412) grant to help with the acquisition and installation of machinery and equipment, Taft said. Both grants are pending approval of the State Controlling Board. Additionally, the production of high-precision gears will enable Honda employees at Russells Point to advance their skills. To assist Honda with specific training and other work force development needs, the state hascommitted a $92,000 Ohio Investment in Training Program grant, Taft said.In Georgia, Honda will invest $100 million to construct its 13th plant in North America, a new 250,000-square-foot plant that will begin assembly of automatic transmissions in fall 2006, according to Koichi Kondo, president of American Honda Motor Co. Inc. At full capacity, the plant will employ 400 and produce 300,000 transmissions per year. Reflecting Honda's strategy to base powertrain production near vehicle production for synchronous assembly, the plant initially will support production of Honda Odyssey minivans and Pilot SUVs at Honda Manufacturing of Alabama LLC in Lincoln, Ala., 60 miles west of the Tallapoosa plant.The $100 million investment in Ohio will result in the transfer of the value-added production of high precision gears from Japan to Ohio, Kondo said. As the new Georgia plant begins production, the company gradually will shift responsibility for transmission production for the Alabama plant to the new Georgia plant and phase in the new responsibility for gear production. The expansion will increase Honda's capital investment to more than $261 million, employment to 900 and plant size from the existing 361,000 square feet to 631,000 square feet.In Alabama, Honda will invest $70 million and add 100 new jobs to begin machining additional engine components at its existing engine plant operations. These components are currently supplied by Honda of America Mfg.'s Anna Engine Plant in Ohio and Honda's Mohka Plant in Japan, Kondo said.Honda began operations in the United States in 1959 and now employs more than 30,000 at 12 manufacturing plants in North America."