Suzuki to build new motorcycle plant in China

TOKYO, Nov 27 (Reuters) - Japan's Suzuki Motor Corp said on Tuesday it plans to build its second motorcycle factory in China, the world's largest motorbike market.

The car and motorcycle maker plans to set up a joint venture with two investors in China's Grand River Group to jointly spend 13.6 billion yen (6.3 million) to build the factory.

Suzuki will invest 5.46 billion yen and take a 40 percent stake in the venture. The factory is due to come onstream by spring 2009 with initial capacity to make 500,000 motorcycles a year.

Suzuki hopes to expand sales in regional cities and villages using Grand River's sales network, it said in a release.

(Reporting by Mayumi Negishi and Kiyoshi Takenaka, Editing by Michael Watson) REUTERS SI DS1625