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Toyota starts engine production at new plant in Indonesia

By Niranjan Mudholkar,

Added 07 March 2016

Has capacity to produce 216,000 engines per year; will produce 1.3 and 1.5 liter NR engines, some of which will be for export.

Previously, manufacturing processes had been divided and were conducted in separate locations due to space constraints. Processes downstream were also subject to the negative impacts of tar, dust, and heat generated in the casting process. However, by reducing equipment sizes and eliminating certain processes, Toyota has minimized the negative impacts on downstream processes, and thus enabled the inclusion of all steps of the manufacturing process in the same plant. This reduces initial investment costs of plants and machinery by 40 percent in comparison with a comparable investment if made in 2008. Furthermore, with the elimination of in-process inventory, a leaner system of engine production has also been created.

 

In attendance at the opening ceremony for the new plant held onsite on March 7, Toyota's Senior Managing Officer Koei Saga commented, "Toyota sees TMMIN as one of our core hubs for the production and supply of both vehicles and engines. Through our operations here, we hope to maintain and strengthen our position as part of the local community here in Indonesia." Also present at the ceremony were TMMIN President Director Masahiro Nonami and representatives of the Indonesian government, including the Minister of Industry.

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