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| Jun 18, 2007 |
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DENSO Establishes New Company in China
to Produce Diesel Common Rail Systems
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KARIYA (Japan) - DENSO Corporation today announced that on June 1 it established a wholly owned company, DENSO (Changzhou) Fuel Injection System Co., Ltd., to produce common rail systems for diesel vehicles in Changzhou, Jiangsu, China. The investment will total approximately four billion yen.
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Construction for the new company is scheduled to begin in October 2007 with completion in August 2008. Production start is scheduled for July 2009. By fiscal 2012, the company's sales are expected to be approximately US$148 million (approximately 18 billion yen).
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"We believe that the demand for common rail systems will grow as China moves towards stricter exhaust emission regulations," said Hiromi Tokuda, senior managing director in charge of DENSO's Powertrain Control Systems and Electronic Systems Business Groups. "DENSO will locally produce and provide common rail systems, particularly for high demand large diesel vehicles, and help create an environmentally conscious automotive society in China."
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DENSO currently produces common rail systems in Japan, Hungary, and Thailand. The new company in China will be DENSO's third production base outside Japan for common rail systems.
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DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs approximately 112,000 people in 32 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2007 totaled US$30.6 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.com.
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New Company Profile
| 1. |
Name |
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DENSO (Changzhou) Fuel Injection System Co., Ltd. |
| 2. |
Establishment |
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June 1, 2007 |
| 3. |
Location |
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Changzhou National Hi-Tech District, Changzhou, Jiangsu, China |
| 4. |
Capital |
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US$25.4 million |
| 5. |
Ownership |
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54.3 percent owned by DENSO |
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45.7 percent owned by DENSO (China) Investment Co., Ltd.
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| 6. |
Investment |
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Approximately US$33 million (approximately four billion yen) |
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President |
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Mitsugu Kibune |
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(current Vice President of DENSO (Guangzhou Nansha) Co., Ltd.) |
| 8. |
Business Description |
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Production of common rail systems |
| 9. |
Employees |
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Approximately 450 (projected for fiscal 2012) |
| 10. |
Sales Target |
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Approximately US$148 million |
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(approximately 18 billion yen projected for fiscal 2012) |
*Exchange rates used are 122 yen per one dollar, at the end of May 2007 for convenience only. Billion is used in the American sense of one thousand million. |
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