Japan's Hino Motors eyes factory in Colombia

Tokyo, May 25: Hino Motors Ltd, the truck unit of Toyota Motor Corp, said it was considering building a factory in Colombia to tap growing demand for trucks in South America.

The Nikkei business daily reported earlier that Hino would team up with trading house Mitsui&Co and local companies to open a joint factory in the fall of 2008.

The paper said the factory would start with an annual output capacity of 4,000 to 5,000 trucks and eventually ramp up to 15,000 units a year.

Hino spokesman Hidenobu Teduka said the company was considering building a factory in the country but said nothing had been decided.

If the plan goes ahead Hino will ship engines, platforms and other key parts from Japan for assembly at the plant. In addition to Colombia, the trucks will be sold in Venezuela, Ecuador and other parts of South America, the Nikkei newspaper said.

Building a factory in Colombia will allow Hino to ship its trucks throughout the region tariff-free, the paper said.

Reuters>