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Honda says factories in China remain closed

They have not been in operation due to a strike. -AFP

Wed, Jun 09, 2010

TOKYO, JAPAN(AFP) - Japan's Honda Motor said Wednesday two of its assembly plants in China remained closed due to a strike at an exhaust parts maker operated by a subsidiary, contrary to earlier media reports.

"The two (Honda) factories remain closed. There is no certainty as to when we can resume operations," a Honda spokeswoman said, denying an earlier Chinese state media report that the dispute had been resolved.

Honda's two assembly plants run by Guangqi Honda have been closed since Monday, following the strike at the joint venture factory of a Honda subsidiary and a Taiwanese firm.

Labour leaders and managers at the Foshan Fengfu Autoparts Company, in the southern province of Guangdong, are still in negotiations, said an official at Yutaka Giken, the Honda subsidiary that operates the joint venture.

"The talks are still continuing," he said.

Fengfu employs 489 workers in Foshan and supplies Honda vehicles with mufflers and other exhaust parts.

The labour dispute comes after Honda, which produces 650,000 vehicles per year in China, last week resolved a strike at its parts unit in Foshan by offering workers a 24 percent pay rise.

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