Honda unit to spend $487 mln on Japan plant-Nikkei

TOKYO, March 9 (Reuters) - A Honda Motor Co Ltd (7267.T: Quote, Profile, Research, Stock Buzz) subsidiary will invest 50 billion yen ($487 million) to set up a manufacturing complex in Japan by 2010 to make 240,000 minivehicles a year, the Nikkei business daily said on Sunday.

The subsidiary, Yachiyo Industry Co Ltd (7298.Q: Quote, Profile, Research, Stock Buzz), said last year it planned to build a new plant in Yokkaichi, western Japan, to make auto engines and other products, with engine assembly starting in 2009, but it did not disclose details such as the size of the investment and production capacity.

Minivehicle have a maximum engine displacement of 660cc and account for roughly one-third of the Japanese auto market.

Yachiyo plans to introduce state-of-the-art automated production lines in the new complex to cut manufacturing costs by 30 percent, the Nikkei said.

A Yachiyo spokesman said details of the new complex had not yet been decided. He said the company would hold a board meeting on Tuesday to discuss the matter. (Reporting by Kiyoshi Takenaka; Editing by Alan Raybould) ($1=102.70 Yen)