Honda of South Carolina Mfg., Inc. (HSC) recently announced that it has begun site preparation for the construction of a new facility for the assembly of the new Honda AquaTrax personal watercraft (PWC). The new $11 million plant will begin operation in

December 2002, and will be located adjacent to HSC’s existing facility that produces and assembles all terrain vehicles (ATVs) and engines.

HSC currently employs 1,500 associates and will hire additional150 associates beginning in April 2002. HSC has the capacity to produce 250,000 ATVs annually and celebrated the assembly of its 500,000th ATV in November 2001. HSC will have the ability to produce 100 PWCs per day at full capacity. Annual production will be based on market demand. Under the current plan, HSC will produce approximately 8,000 units of the 2003 model AquaTrax.

"The construction of a second Honda plant in Timmonsville reaffirms our original decision to locate in South Carolina," said HSC President Hideki Ikegawa. "This decision was based on increased demand from our customers in North America and the outstanding performance of our Honda associates in South Carolina. They deserve this new challenge."

HSC began production of ATVs in Timmonsville in July 1998, with ATV operations currently representing a capital investment of $100 million. The number of ATVs produced has expanded from two to the current roster of eight models. Engine production has been added and the annual capacity is now 250,000 ATVs. HSC currently produces eight ATV models, exporting ATVs to countries including Australia, New Zealand, and the United Kingdom. HSC also provided key ATV components -- including engines, fuel tanks, differentials and swing arms -- to Honda’s Ohio motorcycle plant for ATV assembly there.

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