March 15, 2007 -- Dongfeng Honda Automobile Company Limited, Honda's second base of the company's engine processing line, officially began engine production at their new plant in Wuhan this month. The Wuhan facility is Honda's second largest engine production plant in China after Guangzhou.

"Wuhan is the most appropriate site to carry out a 12,000 engine production line," said Dongfend Honda spokesperson Fu Zongjing told Emerging China. "Not only for its convenient transportation and communication environment, and also the Wuhan employees could have the qualifications to carry out the work", she said.

"The project made Dongfeng Honda Company Limited the first complete car manufacturer in Wuhan, and it also enhanced the strength of the company's production capacity," she said.

In addition, she said, the local government has loosened some regulations on foreign capital investment, which also made the city more attractive to Honda.

According to Fu, planning for the project began in August of 2005, and construction began in December of that year. Construction was completed in August of 2006.

"After this came the assessing phase, which included a series of examinations, and this lasted the next seven months," Fu said.

"By accomplishing this project, which showcases Dongfeng Honda Automobile Company Limited, we finally command the core techniques of making a Honda engine," Fu said. The plant includes the entire engine production line, including the cylinder body and cylinder cover production lines, which can manufacture two types of engines -- of 1.8 liters and 2.0 liters. The production lines can produce 120,000 units annually.

Dongfeng Honda Automobile Company Limited was established on July 16, 2003 as a joint venture between Dongfeng Automobile Company and Honda, with each holding an equity interest of 50%. The company was first located in Wuhan's economic and technological area.

The company focuses primarily on the production of the Honda 2.0/2.4 i-VTEC CR-V and Honda CIVIC.

"In order to provide the best automobile product, we strictly follow technical standards during the manufacturing, testing, and inspection processes to maintain Honda's quality requirements," Fu adds.

The total output value of the auto industry exceeded the iron and steel industry in 2006, totaling 26 billion yuan (US$3.4 billion), making the auto industry the leading industry in the Wuhan district, reports the state-owned Hubei Daily newspaper. Government officials also have expectations for the development of Dongfeng Honda.

"Honda made a wise choice to invest in Wuhan," Yu Zhengshen, secretary of the Wuhan government committee, said in a speech during a visit to the factory last fall. "This project will bring vital force and energy to the local economy. As the government, we will offer as much support as we can. We believe that our cooperation with the company will create a bright future with many possibilities."

Dongfeng Honda also has growth plans.

"With the accomplishment of this engine production line, along with our determination and the favorable conditions for development, Dongfeng Honda Automobile Company has faith that we can continue to diversify and expand the products from the existing vehicle types," Fu said.