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TOKYO: Japan's Honda Motor Co. announced Wednesday plans to spend US$100 million on a new automobile production plant in Argentina to meet growing demand in South America.
The facility, to be constructed in Buenos Aires province, will start up in 2009 with an annual production capacity of 300,000 compact passenger vehicles, the company said in a statement.
The investment comes as Argentina's auto market enjoys strong sales growth now that the economy is recovering from the deep recession that began in the late 1990s.
"With continued market growth expected in Argentina, Honda will begin local automobile production to fulfil expanding market demand," the statement said.
"Moreover, the new plant will begin exporting products to other countries in the South America region," it said.
The new plant will be Honda's second auto production foothold in South America after a factory in Brazil. The company also has a motorcycle plant in Buenos Aires province.
- AFP/yy
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