TOKYO -- Mitsubishi Motors Corp. on Thursday denied a report that it would keep its Okazaki plant in western Japan open, reiterating there was no change to an earlier plan to close the facility.
The Nihon Keizai business daily reported earlier that Mitsubishi has reversed the decision to close the plant due to faster growth than expected in domestic sales and in exports.
"At this moment, Mitsubishi Motors has not changed its basic policy to close down its vehicle production line at the Okazaki plant and to transfer Okazaki vehicle production to other facilities..." it said in a statement.
Mitsubishi, Japan's only unprofitable carmaker, said last year it would close the plant by the end of this year as part of its restructuring. It subsequently postponed the timing of the closure.
The newspaper said the decision to keep the plant open came amid expectations that Mitsubishi's Mizushima factory, also in western Japan, will get busier.
Mitsubishi Chief Executive Osamu Masuko told Reuters in an interview earlier this month that the Mizushima factory, where it produces minicars for Nissan Motor Co., was at full capacity and had had to turn down requests from Nissan for more cars.
Mitsubishi said it is considering reviewing its global production plan for the mid- to long-term, but added nothing had been decided yet.