Mitsubishi Motors Corporation announces that it is to start construction of a new component factory in Yagi-cho, Funai-gun, Kyoto.

The company signed a memorandum with the Yagi-machi authorities in November 1991 regarding the establishment of a factory, intending to use the site for construction of the factory as a measure to relieve congestion at the Kyoto Plant. The original plan called for the construction of a casting plant. However, the upheavals in the business environment brought about by the collapse of the "bubble economy" (over-evaluation of assets) in Japan and the sudden appreciation of the Japanese yen meant the plan was reviewed and the decision made to construct a component factory.

The local land development public corporation began site preparation work in November 1995 with a view to completion in August 1997. Prior to completion, however, Mitsubishi Motors acquired the necessary factory building approvals and construction work on some of the buildings began in July 1997, with completion due in April 1998. This will be followed by installation of plant and equipment, test production, and then by mass production at the beginning of 1999.

The new facility will, to begin with, produce a continuously variable transmission that is currently under development, and some GDI (Gasoline Direct Injection) engines. Total investment in the new factory, the cost of the land included, is expected to be around 23 billion Yen.

Mitsubishi Motors has always operated the Kyoto and Shiga Plants, which form part of the Kyoto Works, placing much importance on preserving harmony with the local community. The presentation to the Shiga Plant of the Minister of Trade and Industry's Award in 1987 and of the Prime Minister's Award in 1995 for greenification and other efforts designed to promote environmental harmony indicate how successful this policy has been.

The company wishes to build on the experience and achievements of both the Kyoto and Shiga Plants and to utilize the very latest in manufacturing technology in achieving harmony with the surrounding natural environment.

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