TOKYO, Aug 8 (Reuters) - Japan’s Honda Motor Co on Thursday said it will spend around $440.55 million to build a new car plant in Brazil that from 2015 will make 120,000 vehicles a year.
The new plant, located in Itirapina city 200 kilometers northwest of Sao Paulo, will double Honda’s annual production in Brazil to 240,000 vehicles. Like other automakers, Honda is looking to tap burgeoning growth in emerging economies such as Brazil by making cars locally.
The factory, which will employ 2,000 workers will build Honda’s Fit compact cars.
Japan’s third-biggest automaker by sales volume in the quarter ended June 30 posted a 5.1 percent gain in operating profit to 185 billion yen ($1.90 billion) helped by strong sales in the United States and Asia that offset weak sales at home.
($1 = 97.6050 Japanese yen)
Reporting by Tim Kelly; Editing by Matt Driskill