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| Apr 4, 2005 |
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Toyota Industries and DENSO to Establish Joint Venture to Produce Car Air-Conditioning Compressor in China
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Tokyo - Toyota Industries Corporation (TICO) and DENSO Corporation today announced that in May it will establish a joint venture with Toyota Tsusho Corporation (TTC), and Toyota Industry (Kunshan) Co., Ltd. to produce car air conditioning compressors in Kunshan, China. The new company-TD Automotive Compressor Kunshan, Co., Ltd. - will begin producing variable displacement compressors in April 2006. The initial investment will be approximately US$9.5 million (1 billion yen).
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In April 2006, DENSO and TICO will also start production of variable displacement compressors at Yantai Shougang DENSO Co., Ltd. (YSD) in China. YSD was established in 1994 with TTC and Shougang Corporation to produce fixed displacement compressors.
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"We are responding to increasing environmental awareness by manufacturing competitive energy-efficient variable displacement compressors through both production bases," said Masafumi Kato, managing director in charge of TICO's Compressor Division.
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Compared to the fixed displacement compressor, which has a constant refrigerant displacement, the variable displacement compressor can alter refrigerant displacement to control air conditioner cooling capability, making it highly fuel-efficient.
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"By forming a new company and expanding the capacity of the existing production base, we will be able to respond to a larger demand for compressors and expand our business in the Chinese market," said Satoshi Watanabe, senior managing director in charge of DENSO's Thermal Systems Group.
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With core-business materials handling equipment and car air-conditioning compressors occupying top world market share, Toyota Industries Corporation is a total equipment maker that is expanding its ventures in vehicles, engines, textile machinery and electronics. Fiscal 2003 sales were 1.16 trillion yen. More information about Toyota Industries Corporation is available at www.toyota-industries.com.
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DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world's major carmakers. Worldwide, the company employs 95,000 people in 31 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2004 totaled US$24.2 billion. For more information, go to www.globaldenso.com
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New Company Profile
| 1. |
Name |
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TD Automotive Compressor Kunshan, Co., Ltd. |
| 2. |
Established |
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May 2005 |
| 3. |
Start of Operations |
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April 2006 |
| 4. |
Location |
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Kunshan Economic & Technical Development Zone, Jiangsu, China |
| 5. |
Capital |
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Approximately US$6.6 million* (690 million yen) |
| 6. |
Ownership |
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Toyota Industries Corporation: 57 percent |
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DENSO (China) Investment Co., Ltd.**: 35 percent |
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Toyota Tsusho Corporation: 4 percent |
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Toyota Industry Kunshan Co., Ltd.: 4 percent |
7. |
Total Investment |
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Approximately US$9.5 million* (1 billion yen) |
| 8. |
Business Fields |
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Production of variable displacement car air-conditioning compressors |
| 9. |
Employees |
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60 (projected for 2007) |
| 10. |
Production capacity |
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280,000 units a year (projected for 2007) |
| 11. |
Site area |
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approximately 215,000 square feet (20,000 square meters) |
| 12. |
Total floor area |
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54,000 square feet (5,000 square meters) |
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* Exchange rates used are 105 yen per one dollar, at the end of February 2005.
**100 percent DENSO-owned regional headquarters for China |
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Background Information:
Company Profile of Yantai Shougang DENSO Co., Ltd.
| 1. |
Established |
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December 1994 |
| 2. |
Location |
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Yantai Economic and Technical Development Zone, China |
| 3. |
Capital |
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Approximately US$38 million (4 billion yen) |
| 4. |
Ownership |
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Shougang Corporation: 50 percent |
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DENSO Corporation: 30 percent |
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Toyota Industries Corporation: 15 percent |
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Toyota Tsusho Corporation: 5 percent |
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Business Fields |
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Manufacture and sale of car air conditioners, bus coolers, and compressors for car air conditioners |
| 6. |
Employees |
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Approximately 380 (December 2004) |
| 7. |
Sales |
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Approximately US$143 million* (15 billion yen) (December 2004) |
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| * Exchange rates used are 105 yen per one dollar, at the end of February 2005. |
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