The Nikkei adds that the facility, which will occupy a 1.3 million sq. metre plot on the outskirts of Jakarta, will feature comprehensive engine manufacturing operations by 2015, including the ability to cast and forge engine parts.
The company, which assembles the Swift and SX4 in Indonesia, is working to lift its annual output capacity there from 120,000 vehicles to at least 150,000 next spring. Its engine production capacity in Indonesia however still stands at 50,000 units a year.
The report adds that in addition to using its Indonesian engines and parts locally, Suzuki will consider exporting some output to factories in other ASEAN member countries. At the same time, the company plans to import engines and parts from Thailand to Indonesia, creating a division of labour and cutting costs by consolidating the production of individual engine types.
© 2012 Paul Tan's Automotive News. All Rights Reserved.
This story originally appeared on Paul Tan's Automotive News on Wed, 04 Jan 12 04:47:39 +0000.
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