Nissan has opened its second plant in Purwakarta, Indonesia, representing an investment of 33 billion yen and continuing to position Nissan as 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, according to the automaker.
The 60,000-square-meter 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, according to Nissan.
Initial production will be dedicated to assembling Datsun vehicles for customers in Indonesia.
Nissan said it also confirmed the approval of the company’s 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, according to the automaker. It 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.”