- Capital investment in Purwakarta totals 33 billion yen
- Nissan expands annual production capacity to 250,000 units through second plant
- Nissan receives license for Low Cost Green Car (LCGC) program
Nissan today inaugurated its new manufacturing facility in Indonesia. The second plant in Purwakarta, Indonesia, represents an investment of 33 billion yen and is a significant step forward for Nissan to become a leading brand in the country. The investment is also an important part of the company’s market expansion plan stated in its six year mid-term business plan, Nissan Power 88.
The 60,000 m2 facility includes body assembly, paint, trim and chassis operations. With the expansion, Nissan increases its production capacity in Indonesia from 100,000 units per year to 250,000 at full ramp-up. The new plant will generate up to an additional 3,000 jobs in the region.
Initial production will be dedicated to assembling Datsun vehicles for customers in Indonesia.
At the ceremony, Nissan Motor Chief Competitive Officer (CCO) Hiroto Saikawa highlighted the importance of Indonesia and quality leadership. “By investing in a second plant in Indonesia and leveraging the global manufacturing capabilities of the Nissan Production Way, we are now able to further satisfy the increasing demand of Indonesian customers,” Saikawa said. “I have absolute confidence that the vehicles produced here will be world-class in terms of quality and that we will continue to deliver exciting products to our valued Indonesian customers.”
Nissan also confirmed the approval of their Low Cost Green Car (LCGC) program license. With this approval, Nissan will enter the LCGC segment which is expected to be the growth engine for motorization in Indonesia.
Indonesia is a key strategic market for Nissan’s global business objectives. Nissan expects to sell more than 90,000 units in Indonesia in 2014. To achieve this goal, the company plans to increase the number of sales outlets from 100 to 130 during the year.
“We are extremely pleased to launch our second plant and announce our participation in the LCGC initiative today,” said Toru Hasegawa, corporate vice president, Nissan Motor Corporation and president director, PT. Nissan Motor Indonesia. “With more production capacity and the LCGC license, we are able to further enhance our offerings to our Indonesian customers. Our investment is a reaffirmation of our deep and long-term commitment to Indonesia and our Indonesian customers.”
