Suzuki to spend $620 million on a new facility against earthquake risk in Japan

With yet another massive earthquake that has hit Japan; it has not come as a great surprise when Suzuki Motor Corp has announced its decision to move some of its domestic production and development facility to other locations in Japan to marginally escape the threat of earthquakes and Tsunamis. In the latest press release, Suzuki Motor Corp. has made it clear that it is set to spend about 50 billion Yen ($ 620 millions) for the facility to be partially moved to the new locations in Japan.

Suzuki Motor Corp, Japan’s fourth biggest auto maker in the world, is believed to purchase two blocks of land in an industrial park of Hamamatsu city in central Japan. The operations in the research and development at the new facility are to commence from August 2016 and the production part of the facility is hoped to begin in May 2017. This new facility is going to house the production of motorcycle engine parts and next-generation vehicles as well according to the statement made by them.

This decision is believed to be made after the statement made by the CEO Osamu Suzuki’s warning last month on impending high risk situation due to these massive calamities being anticipated since a long period of time in the central regions of Tokai where the original Suzuki Moto Corp facility is situated. The new facility is Hamamatsu will be about 15 km away from the shore on a more solid ground, considerably away when compared to the current production house being only 200 to 300 meters away from shoreline