Friday, 20 July 2012

Maruti Suzuki plant in India remains closed

Japan's Suzuki Motor says a car manufacturing plant of its Indian subsidiary will remain closed at least through Sunday after a riot by workers.

The violence was sparked on Wednesday by a labor dispute at Maruti Suzuki India's Manesar factory in the northern state of Haryana.

The workers went on a rampage and set fire to the plant, killing an Indian manager and injuring other staff, including 2 Japanese employees.

Police have arrested about 100 workers for attempted murder and arson.


The plant has been sealed off for an investigation. Many police officers have been deployed in the area.

Suzuki officials announced that the factory will be closed on Saturday. Sunday is a regular holiday.

A senior Maruti Suzuki India official told NHK that the company cannot predict when the plant will reopen.

If production remains suspended, the Suzuki group will be hard hit because its Indian operations generate about 30 percent of its pretax profit.

The Indian economy could also be affected by a prolonged closure. Maruti Suzuki is India's largest auto maker and has links with about 270 local auto parts manufacturers.

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