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Mazda Factory Fire Update
Submitted by Dan Mazzella on Thursday, December 23, 2004 - 11:48pm

Mazda Motor Corporation will secure the production volume of Ujina No.1 Plant (U1) through making use of the paint shop of Ujina No.2 Plant (U2) in Hiroshima to minimize the impact by the fire that broke out at U1 Plant on December 15th, 2004. It will also start the full-scale restoration of the plant toward the early resumption of the U1 Paint Shop.

Mazda will resume production operations of "Demio" at U1 starting on January 6, 2005 by utilizing the U2 Paint Shop and study restarting operations sequentially for other models such as Verisa and MPV. In addition, Mazda will secure its total production volume through increasing the production speed at U2 plant and Hofu plants.

Mazda has been doing the clean-up and overhaul activities of the building and equipment until now. The full-fledged restoration of the U1 Paint Shop will begin on December 25, 2004 and dismantle the damaged equipment using large-scale cranes. Throughout the restoration process, Mazda will give top priorities on safety and considerations for the local community and environment.

With the results of the investigation as of today, the total amount of the damage is about 2.7 billion yen. This figure includes direct losses from the fire in buildings, equipment, and semi-finished products but excludes the cost of dismantlement and restoration.

Mazda's President and CEO, Hisakazu Imaki said at the press conference "Mazda has been giving the utmost attention to the safety throughout the company. It is very regrettable that the fire occurred in the plant even with such efforts. It is, however, a great consolation that no employees or related people were injured. We express our sincere apologies to everyone in the local community of Ujina No.1 Plant facility and to all Mazda stakeholders for the concerns and inconveniences caused by the fire at the plant. While making the most effort for the earliest possible restoration, we will not make any compromise on safety nor quality. As for the resumption timing of production at U1 plant and financial impact, we will share the information with you as soon as the outlook is available."

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