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Boon Siew Honda plans new bike plant in Seberang Prai PDF Print E-mail

By David Tan, The Star

March 21, 2011


GEORGE TOWN: Boon Siew Honda Sdn Bhd plans to invest substantially in a new motorcycle assembly plant in Seberang Prai.

Managing director Harada Shoichi told StarBiz that the assembly facility, which was expected to be constructed later this year, would be located at a new site.

“We are still considering the investment amount, which should not be more than RM500mil. The assembly plant, which will be equipped with the latest technology, will commence production by the end of 2012,” he said.

“We will be shifting from our present location in Permatang Pauh, Central Seberang Prai, when the new facility is ready,” he said.

The new assembly plant would engage around 1,000 workers compared to a workforce of about 700 at the existing facility in Permatang Pauh, Shoichi said.

“We may consider producing electric motorcycles at the new assembly plant in the future,” he said, adding that the present market demand for electric motorcycles in Malaysia was not big.

Shoichi said the new assembly plant would have the capacity to produce 250,000 motorcycles per year.

“Last year, we sold 219,000 Honda motorcycles in the country. This year we are targeting to sell 235,000 units.

“In 2010, the total market for motorcycles in the Malaysia was around 500,000,” he said.

Boon Siew Honda, a joint-venture company between Honda Motor Co Ltd and Oriental Holdings Bhd, began operations in September 2008 with the dual aim of consolidating motorcycle production and sales in Malaysia and to achieve higher customer satisfaction and efficiency.

Prior to the emergence of Boon Siew Honda, Boon Siew Sdn Bhd was responsible for the wholesale business of Honda motorcycle products in Malaysia and contracted the final assembly of Honda motorcycles to Kah Assemblers Sdn Bhd, a wholly-owned subsidiary of Oriental Holdings Bhd.

In 2009, wholesale operations were transferred from Boon Siew Sdn Bhd to consolidate production and sales operations within the new company.