Honda opens major facility in Prachinburi

[webfact]

Honda opens major facility in Prachinburi

PRACHINBURI, 13 May 2016 (NNT) – Honda Motor Co. has underlined its confidence in Thailand as a center for production with the opening of a new manufacturing facility as well as plans to place its ASEAN office in Bangkok.

Deputy Prime Minister Somkid Jatusripitak took part in the opening of the new Honda factory in Rojana Industrial Estate of Prachinburi, stating that Honda is the 4th highest producer of cars in Thailand. Most notably, he pointed out that Honda has been receptive to Thailand’s goal to build an environmentally-friendly automobile as part of a push to drive the Kingdom’s economy through eco-friendly technology. The company has invested in research and development for vehicle along with selecting Bangkok as the location for its head office in ASEAN.

Honda exported 70,000 automobiles produced in Thailand to over 50 nations worldwide, making Thailand one of the carmakers most important production centers. Thailand also exported the most car parts made by Honda last year.

The latest Honda factory was constructed with investment worth 17.15 billion baht and has the capability to produce 120,000 vehicles a year. It was established in response to confidence that Thailand will grow as a hub for car production in the future.


-- NNT 2016-05-13

[phoenixdoglover]

This could be a genuine "but, but Thaksin" moment.

BANGKOK, Thailand, July 10, 2013 - Honda Automobile (Thailand) Co., Ltd. (HATC), Honda's automobile production and sales joint venture company in Thailand, today held a ceremony to mark the start of construction of its new automobile production plant (to be located within the Rojana Industrial Park in Prachinburi Province). The ceremony was attended by Thailand Prime Minister Yingluck Shinawatra and Japanese Ambassador to Thailand Shigekazu Sato as a guest of honor, as well as Takanobu Ito, President & CEO of Honda.

[DaddyWarbucks]

This could be a genuine "but, but Thaksin" moment.

BANGKOK, Thailand, July 10, 2013 - Honda Automobile (Thailand) Co., Ltd. (HATC), Honda's automobile production and sales joint venture company in Thailand, today held a ceremony to mark the start of construction of its new automobile production plant (to be located within the Rojana Industrial Park in Prachinburi Province). The ceremony was attended by Thailand Prime Minister Yingluck Shinawatra and Japanese Ambassador to Thailand Shigekazu Sato as a guest of honor, as well as Takanobu Ito, President & CEO of Honda.

"but, but Thaksin" is in exile while several members of his immediate and extended family - notably Yingluck - face criminal charges.

Honda was in Thailand long before the Shinawatras' came to power. They may have initiated this particular project but it is doubtful they still play a part in it.

The fact that the plant is successfully completed and going into production isn't because of the Shinawatra clan, it is in spite of them.

[phoenixdoglover]

This could be a genuine "but, but Thaksin" moment.

BANGKOK, Thailand, July 10, 2013 - Honda Automobile (Thailand) Co., Ltd. (HATC), Honda's automobile production and sales joint venture company in Thailand, today held a ceremony to mark the start of construction of its new automobile production plant (to be located within the Rojana Industrial Park in Prachinburi Province). The ceremony was attended by Thailand Prime Minister Yingluck Shinawatra and Japanese Ambassador to Thailand Shigekazu Sato as a guest of honor, as well as Takanobu Ito, President & CEO of Honda.

"but, but Thaksin" is in exile while several members of his immediate and extended family - notably Yingluck - face criminal charges.

Honda was in Thailand long before the Shinawatras' came to power. They may have initiated this particular project but it is doubtful they still play a part in it.

The fact that the plant is successfully completed and going into production isn't because of the Shinawatra clan, it is in spite of them.

I think you missed what has become sort of an inside joke on this forum.

I don't disagree with your comments. In fact I believe the Japanese, more than any other foreign investors, continue to assist development of the Thai economy.

Sent from my HTC One_M8 Eye using Tapatalk

[PremiumLane]

How foolish of Honda not to consult the business experts here on TV about the dangers of doing business in Thailand

[cumgranosalum]

The Honda plant was started in 2013. It was built to change some production from the old plant which was inundated by the floods (2011) ... The new factory is built on higher ground.

So it really isn't an endorsement of any government policies, it is just a way to maintain production targets. The government appears to be putting a bit of spin on it to try and salvage a bit of reputation lost since the coup.

Edited May 14, 2016 by cumgranosalum

[mtls2005]

Impressive facility.

http://www.automotiveworld.com/news-releases/honda-holds-opening-ceremony-new-prachinburi-plant/

The ARC feature is interesting.

http://world.honda.com/news/2016/c160421beng.html

[cumgranosalum]

Impressive facility.

http://www.automotiveworld.com/news-releases/honda-holds-opening-ceremony-new-prachinburi-plant/

The ARC feature is interesting.

http://world.honda.com/news/2016/c160421beng.html

You don't explain why you think this is this interesting.

As the Thai automotive industry moves into other areas apart from pickups they inevitbly have to start using the same production methods as used around the world for producing monocoque vehicles.

it looks like any normal car production especially the Toyota "lean Line" system.

[sendintheclowns]

The govt. may be putting the spin on, but there are a number new deals signed up, so far in 2016; deals where regional headquarters are planned to be located in Thailand. And by regional, I mean to include India.

[marcusd]

This could be a genuine "but, but Thaksin" moment.

BANGKOK, Thailand, July 10, 2013 - Honda Automobile (Thailand) Co., Ltd. (HATC), Honda's automobile production and sales joint venture company in Thailand, today held a ceremony to mark the start of construction of its new automobile production plant (to be located within the Rojana Industrial Park in Prachinburi Province). The ceremony was attended by Thailand Prime Minister Yingluck Shinawatra and Japanese Ambassador to Thailand Shigekazu Sato as a guest of honor, as well as Takanobu Ito, President & CEO of Honda.

"but, but Thaksin" is in exile while several members of his immediate and extended family - notably Yingluck - face criminal charges.

Honda was in Thailand long before the Shinawatras' came to power. They may have initiated this particular project but it is doubtful they still play a part in it.

The fact that the plant is successfully completed and going into production isn't because of the Shinawatra clan, it is in spite of them.

I think you missed what has become sort of an inside joke on this forum.

I don't disagree with your comments. In fact I believe the Japanese, more than any other foreign investors, continue to assist development of the Thai economy.

Sent from my HTC One_M8 Eye using Tapatalk

Yes Japanese are assisting Thailand and that is why Japanese investment DROPPED 81% last year alone and not increasing this year... refer to previous Thai Visa news.

[elgordo38]

Over the years it has always surprised me that manufacturers seem to double down at tail end of an economic expansion period and just before the SHTFan period

[phoenixdoglover]

This could be a genuine "but, but Thaksin" moment.

BANGKOK, Thailand, July 10, 2013 - Honda Automobile (Thailand) Co., Ltd. (HATC), Honda's automobile production and sales joint venture company in Thailand, today held a ceremony to mark the start of construction of its new automobile production plant (to be located within the Rojana Industrial Park in Prachinburi Province). The ceremony was attended by Thailand Prime Minister Yingluck Shinawatra and Japanese Ambassador to Thailand Shigekazu Sato as a guest of honor, as well as Takanobu Ito, President & CEO of Honda.

"but, but Thaksin" is in exile while several members of his immediate and extended family - notably Yingluck - face criminal charges.

Honda was in Thailand long before the Shinawatras' came to power. They may have initiated this particular project but it is doubtful they still play a part in it.

The fact that the plant is successfully completed and going into production isn't because of the Shinawatra clan, it is in spite of them.

I think you missed what has become sort of an inside joke on this forum.

I don't disagree with your comments. In fact I believe the Japanese, more than any other foreign investors, continue to assist development of the Thai economy.

Sent from my HTC One_M8 Eye using Tapatalk

Yes Japanese are assisting Thailand and that is why Japanese investment DROPPED 81% last year alone and not increasing this year... refer to previous Thai Visa news.

Different perspective:

Jan 2016

JAPAN FIRST, SINGAPORE SECOND

Foreign direct investment (FDI) from Japan in 2015 remained the highest in Thailand, with total investment approved from Japan valued at more than 144 billion baht for 426 projects.

Singapore came a distant second with 122 projects approved valued at 39.9 billion baht between January and November.

[cumgranosalum]

This could be a genuine "but, but Thaksin" moment.

BANGKOK, Thailand, July 10, 2013 - Honda Automobile (Thailand) Co., Ltd. (HATC), Honda's automobile production and sales joint venture company in Thailand, today held a ceremony to mark the start of construction of its new automobile production plant (to be located within the Rojana Industrial Park in Prachinburi Province). The ceremony was attended by Thailand Prime Minister Yingluck Shinawatra and Japanese Ambassador to Thailand Shigekazu Sato as a guest of honor, as well as Takanobu Ito, President & CEO of Honda.

"but, but Thaksin" is in exile while several members of his immediate and extended family - notably Yingluck - face criminal charges.

Honda was in Thailand long before the Shinawatras' came to power. They may have initiated this particular project but it is doubtful they still play a part in it.

The fact that the plant is successfully completed and going into production isn't because of the Shinawatra clan, it is in spite of them.

All the Japanese car manufacturers and several other multinationals have built factories over the years so they have a vested interest in Thailand. They won't/can't just pack up and leave.

BUT - the events at Honda do not represent a huge expansion and it may not even be as big as envisaged in the Thaksin era. Only under the present administration has the Thai ambassador been summoned by the Japanese to explain their "knee-jerk" idea of insisting on a Thai majority on the boards of "foreign" companies.

The fact is that most major multinationals have lost some degree of confidence in Thailand's economic management - remember that the current minister in charge of the economy is the same man who presided over the catastrophic stock exchange collapse under the last junta due to his absurd ideas on currency control.

Loss of confidence doesn't mean a total stoppage of production and investment, but it does mean people are being very cautious at present....presumably because they hope for an elected government - but no-one in their right mind can possibly deny that the longer that takes in coming, the more loss of confidence there wiil be by foreign companies and investors.

[dbrenn]

Bucking the trend. ..

[cumgranosalum]

Bucking the trend. ..

Really? I'd say the overwhelming evidence is to the contary...as pointed out above...why do you think any "trend" is being "bucked"?

[cumgranosalum]

This project was not just conceived but actually started under the previous regime.....it is unlikely that once building had commenced and Honda had committed billions to it's inception as well as organising markets and infrastructure, that they would pull out on hearing of the coup......it's a case of "we started, so we'll continue"

...and now the government has seized (rather clumsily) on the opportunity to use this factory opening as a bit of spin/publicity to try and persuade the world that companies are investing in Thailand again....however all the evidence would suggest that is not the case. it would be interesting to hear what went on behind the scenes to sweeten the deal for Honda.

[cumgranosalum]

joke on this forum.

I don't disagree with your comments. In fact I believe the Japanese, more than any other foreign investors, continue to assist development of the Thai economy.

Sent from my HTC One_M8 Eye using Tapatalk

Yes Japanese are assisting Thailand and that is why Japanese investment DROPPED 81% last year alone and not increasing this year... refer to previous Thai Visa news.

Different perspective:

Jan 2016

JAPAN FIRST, SINGAPORE SECOND

Foreign direct investment (FDI) from Japan in 2015 remained the highest in Thailand, with total investment approved from Japan valued at more than 144 billion baht for 426 projects.

Singapore came a distant second with 122 projects approved valued at 39.9 billion baht between January and November.

Japan has about a 30% stake in Thai industry - but that does not detract from the fact that NO-ONE is at present keen to invest in Thai industry. Of course they will keep projects going - they don't want to lose money, but they certainly aren't as keen as they were to increase their involvement. Other countries in the region are beginning to challenge Thailand for this supremacy - e.g in the motor industry. Indonesia's progress has closed the gap much more rapidly then predicted.

Until Thailand establishes a "democracy" the outside world will be very wary of increasing investments. It has already been sown that decisions made by one man with no opposition can be disastrous for an economy.

Edited May 14, 2016 by cumgranosalum

[dbrenn]

Bucking the trend. ..

Really? I'd say the overwhelming evidence is to the contary...as pointed out above...why do you think any "trend" is being "bucked"?

Notwithstanding government propaganda about how well the economy is doing, I was referring to this development as bucking the trend of foreign investment in Thailand, which fell a whopping 78% in 2015.

http://asia.nikkei.com/Politics-Economy/Economy/Foreign-investment-down-78-despite-incentives

[marcusd]

Yes Japanese are assisting Thailand and that is why Japanese investment DROPPED 81% last year alone and not increasing this year... refer to previous Thai Visa news.

Different perspective:

Jan 2016

JAPAN FIRST, SINGAPORE SECOND

Foreign direct investment (FDI) from Japan in 2015 remained the highest in Thailand, with total investment approved from Japan valued at more than 144 billion baht for 426 projects.

Singapore came a distant second with 122 projects approved valued at 39.9 billion baht between January and November.

Being in business you often get APPROVALS in place JUST IN CASE

Yes I agree there were many approvals. Nothing occassioned though

Australia had 49million USD APPROVEED by BOI in 2013.

Do you know how many of those APPROVALS actually took up positions?

NOT ONE DIME. Not one baht

So much for approvals.

They all went elsewhere.

i am privy to this as was one of them. I also have a friend in the Trade Commission

[marcusd]

Japan has about a 30% stake in Thai industry - but that does not detract from the fact that NO-ONE is at present keen to invest in Thai industry. Of course they will keep projects going - they don't want to lose money, but they certainly aren't as keen as they were to increase their involvement. Other countries in the region are beginning to challenge Thailand for this supremacy - e.g in the motor industry. Indonesia's progress has closed the gap much more rapidly then predicted.

Until Thailand establishes a "democracy" the outside world will be very wary of increasing investments. It has already been sown that decisions made by one man with no opposition can be disastrous for an economy.

I actually thought Japanese investment in Thailand was about 68%. However, Thailand has lost it as its too late. Decisions like these companies take years and there has been years of uncertainly here thus Toyota moving Fortuner and Such to Cebu in Philippines and Honda is actually about 10% of all production here in Thailand for ASIA only not the world. I got that from Honda's own website.

Sad to say but the red roses now have wilted

[cumgranosalum]

Bucking the trend. ..

Really? I'd say the overwhelming evidence is to the contary...as pointed out above...why do you think any "trend" is being "bucked"?

Notwithstanding government propaganda about how well the economy is doing, I was referring to this development as bucking the trend of foreign investment in Thailand, which fell a whopping 78% in 2015.

http://asia.nikkei.com/Politics-Economy/Economy/Foreign-investment-down-78-despite-incentives

but it ain't new it was started in 2013 and planned for years before that ....

[dbrenn]

So were the projects that were cancelled in 2015. Companies can pull the plug on projects that were planned years earlier. It happens all the time.

[cumgranosalum]

So were the projects that were cancelled in 2015. Companies can pull the plug on projects that were planned years earlier. It happens all the time.

they look at the costs and the risks - if they have cancelled some then is reduced the costs and therefore risks on remaining.

however they needed somewhere out of the floods for their existing production so there are various reasons why this factory might be better continued - Cancellation gets more and more expensive as the project progresses.

if you are trying to say that this is business as usual in Thailand then I reckon you are totally misguided.......I think the government will have bent over backwards to keep this going and intend to milk it for all they can.

Edited May 15, 2016 by cumgranosalum

[bruceamstutz]

Now I know why the Yakuza Gang Boss was in town for.....Came to over see the Gangs investment in Honda Prachinburi, but to bad he managed to get himself arrested last week.....5555

[sookie lala]

Prachinburi as yes i remember that place, it was flooded impassible for weeks a couple of years back.

[cumgranosalum]

Prachinburi as yes i remember that place, it was flooded impassible for weeks a couple of years back.

so you are suggesting the new Honda site will be flooded too?

[bruceamstutz]

Prachinburi as yes i remember that place, it was flooded impassible for weeks a couple of years back.

so you are suggesting the new Honda site will be flooded too?

I don't think that will be the case any time in the future. I live near there and I can see the factory from highway 304 and it looks like it's elevated enough so flooding of the factory won't be a problem. However access by car to the factory may shut production down during heavy rain caused flooding. I'm sure Honda is smart enough and planned a factory that will not have a re-occurrence of the flooding of their factory 4-5 years ago....