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Yamaha hit by slump

Yamaha hit by slump

Plans have been scaled back and construction slowed on a new Yamaha motorcycle manufacturing facility planned for Phnom Penh, the local partner in the joint venture facility said Monday. "In the original plan, we planned to start production in October 2009, but due to the financial crisis we delayed the plant construction for three months and just recently continued," said Kong Nuon, the president of Kong Nuon Import & Export. "We expect to finish the plant in early 2010." Kong Nuon said the company had also dropped its planned annual capacity of 30,000 motorcycles in the first year by at least 30 to 40 percent in response to falling auto sales across the Kingdom. He said demand for motorcycles reached 130,000 units in 2007, but expected a "serious drop" in sales over the next few years as a result of the slump. The $11.5 million, 94,890-square-metre joint-venture facility, is being built in the Phnom Penh Special Economic Zone. The company, Yamaha Motor Cambodia (YMKH), was formed in October last year. Yamaha Motor holds a 70 percent stake, Toyota Tsusho 20 percent and Kong Nuon Import & Export the remainder. It has replaced Asia Motors Co (AMC), a joint venture between Toyota Tsusho and Kong Nuon Import & Export. 

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