American Honda Breaks Ground on New Midwestern Consolidation Center in Troy, Ohio
$89 Million Investment Will Create 110 New Jobs

American Honda Motor Co., Inc. broke ground today for a Midwestern Consolidation Center in Troy, Ohio, which will expand the company's U.S. parts distribution operations in the region. Ohio Governor Bob Taft and local Troy elected officials joined Honda executives for the event. The expansion is expected to create approximately 110 new full-time jobs. The hub will replenish American Honda's nine other distribution centers in the United States.

Honda's capital investment in the new 58-acre Troy center will be approximately $89 million, which includes investments of $64 million in personal property and $25 million in construction. In addition to the domestic parts supplier distribution hub, the center will also house a procurement operations support office.

"The new Midwest Consolidation Center is a vital part of American Honda's belief in providing the highest level of service to our valued customers," explains James Roach, senior vice president of American Honda's Parts Division. "The consolidation center's central location to Honda's other parts distribution centers will enable the company to further enhance its timely distribution, inventory management, deployment and logistics practices."

The new 530,000-square foot (sq. ft.) facility will be located next to American Honda's current parts distribution center, which has been operating in Troy since 1986. It will include about 500,000 sq. ft. of warehouse distribution space and 30,000 sq. ft. of office space.

Construction of the project is expected to begin in Fall 2006 and be completed by Fall 2007. As part of Honda's commitment to environmental sustainability, the new Troy distribution center will be designed and constructed utilizing environmentally friendly products and materials. American Honda will work with the U.S. Green Building Council to earn the organization's Leadership in Energy and Environmental Design or LEED certification. The Troy facility would become American Honda's fourth environmentally friendly facility in the United States.

American Honda currently employs approximately 340 full-time associates at its existing Troy facility. Upon the new facility's completion, 100 of the current procurement associates will be relocated to the new parts distribution hub. The expansion of warehouse operations creates about 110 new full-time warehouse positions with total employment at the new facility expected to reach about 210.

American Honda's Parts Division handles the marketing, purchasing, inventory and distribution of genuine Honda parts for all Honda products.

Honda began operations in the U.S. in 1959 with the establishment of American Honda Motor Co., Inc., Honda's first overseas subsidiary. Honda began U.S. production operations in 1979. Honda now employs more than 28,000 Americans in the design, manufacture and marketing of its products in America. Honda currently builds products in 13 manufacturing plants in North America, with three major R&D centers in the U.S.

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