Fuji Heavy Industries (FHI) to boost engine production capacity at Japanese plant

Expansion driven by plans to increase annual vehicle manufacturing capacity over the next six years by 37% to 1.07 million units

Fuji Heavy Industries (FHI), the producer of Subaru-brand vehicles, plans to invest JPY20 billion (USD196.3 million) over the next two years to boost engine production capacity at its Gunma Oizumi plant, according to a Nikkei report. The move, the report claims, will increase the plant's engine output capacity by 20% to 960,000 units per annum (upa). The Gunma Oizumi plant is Fuji Heavy's sole engine facility and caters to domestic as well as overseas vehicle production. Along with the capacity expansion, the company plans to replace old-technology engines gradually with newer counterparts.