Honda to Relocate Shanghai Motorcycle Plant

Honda Motor Co. will shut down a joint venture motorcycle plant in Shanghai and replace it with a new 11.4 billion-yen ($104 million) facility in China's Jiangsu province in January 2017, The Nikkei reports.

Honda is closing the current factory, which has operated through its venture with Sundiro Holding, and will sell the site. The company says the plant's configuration hurts production efficiency and raises costs but cannot be sufficiently remodeled to cure those problems.

The new facility will have annual capacity to make 600,000 motorcycles, about the same as the Shanghai plant it is closing.