Isuzu investing $131 mil. to produce low-emission trucks in Taiwan

09, Jan. 2020

Photo by Nigel Tadyanehondo on Unsplash
Photo by Nigel Tadyanehondo on Unsplash

TAIPEI, NNA - Japan’s top truck maker Isuzu Motors Ltd. will invest 4 billion New Taiwan dollars ($131 million) to manufacture eco-friendly commercial trucks in central Taiwan, as the island tightens its grip on emission pollution.

Isuzu had signed an agreement with Taichung City Government’s Economic Development Bureau Tuesday to build a production plant in Taichung’s Fongchou Industrial Zone to produce low-emission diesel trucks. The move will meet Taiwan's new vehicular emission standard similar to the one already set by the European Union (EU) and internationally recognized.

Isuzu had already introduced such less polluting vehicles in Japan which has stringent regulations to reduce air pollutants from diesel vehicles.

To be built on a 50,000 square-meter site, Isuzu's Taichung plant is expected to begin operation in second half of 2021, the firm’s media spokesman Eiji Mitsuhashi told NNA Tuesday.

It will manufacture all types of trucks currently available in Isuzu product line-up in Japan except pickup models. The target is to produce 6,000 units a year for the Taiwan market only, he said.

With its central location, Taichung enjoys lower transportation costs and is the hub of a strong machinery industry with many auto parts suppliers. These factors attracted Isuzu to set up its second plant there, after building an assembling factory in the same area in 2013.

Views have been expressed in the local media regarding the new plant's domestic focus. Some quarters felt that Isuzu should increase production and export the green vehicles to countries with markets bigger than Taiwan.

Established in 1937, Isuzu produces a wide range of vehicles such as trucks, buses, sport utility vehicles as well as industrial engines. The company made consolidated sales of 2.15 billion yen ($19.9 billion) in the business year to March 2019, according to its financial statement.