Thursday, August 9, 2007

Honda builds world parts hub

Local auto parts and component suppliers are expected to earn about 8.14 billion baht per year from Honda's plan to set up a parts consolidation centre in Thailand.

The Board of Investment (BoI) recently approved promotional privileges for Honda Trading (Thailand) Co to set up the centre to procure both locally and foreign-made materials, parts and components for Honda factories worldwide, said BoI deputy secretary general Hiranya Sujinai.

The planned centre would cost Honda Trading 247.5 million baht and would serve as a procurement and logistics centre for Honda subsidiaries worldwide.

The state-of-the-art warehouse would be built on a site covering 10,500 square metres at the Rojana Industrial Park in Ayutthaya.

The warehouse, she said, would be the first of its kind for the Honda Group in Thailand as a facility to distribute products worldwide. After Honda Trading received orders overseas, it would start sourcing materials, parts and components at home and abroad, of which 70% would be procured from local sources that would help local suppliers generate 8.14 million baht revenue per year.

''This project will help turn Thailand into the centre to procure parts and components from local and foreign suppliers for the automotive industry. Computerised online systems will be used to manage the inventory and programmes to control product quality and packaging to bring it in line with the required standard,'' said Ms Hiranya.

As well, the project would support local manufacturers, which are mostly small and medium sized exporters.

Honda Trading, part of Honda Trading Corporation of Japan has a core business of machinery import and export, equipment, auto parts and components for automobiles including motorcycles for Honda subsidiaries worldwide.

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