DENSO Invests Approximately $51.4 Million to Expand Silao Mexico Plant

Jul 11, 2013

- Adding about 450 jobs and adding a new product line -

KARIYA (Japan) - Global automotive supplier DENSO is investing approximately $51.4 million to expand its operations and add about 450 new jobs, at its DENSO Mexico S.A. de C.V. (DNMX) manufacturing facility in Silao, Guanajuato, Mexico. The investment represents the addition of a new product line to make alternators for its North American customers as they are ramping up production in the region. The new line is scheduled to start production in October 2014.

This expansion news comes on the heels of DENSO's January 2012 announcement to build the Silao facility, which will begin production of heating, ventilation and air conditioning (HVAC) units in October 2013. DENSO's initial investment totaled US$57 million, which represented a 25,600 square meter facility and more than 400 jobs. Since the announcement, DENSO has increased its production line up of radiators and washer systems and, as a result, decided to expand 30,600 square meters further to accommodate the alternator line and other future business expansions. The total investment now represents US$108.4 million, 56,200 square meter facility and about 850 jobs.

The Silao plant is the third plant for DNMX, which also has two facilities in Nuevo Leon state. DNMX currently manufactures a variety of automotive products at its two existing plants, including instrument clusters, climate control panels, and engine system control components such as variable cam timing and oil control valves.

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world's major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 36 countries and regions (including Japan) and employs more than 130,000 people. Consolidated global sales for the fiscal year ending March 31, 2013, totaled US$38.1 billion. Last fiscal year, DENSO spent 9.4 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges.

Company Profile
DENSO Mexico S.A. DE C.V.
Silao Plant

Established September 1994
Ownership 95 percent owned by DENSO International America, Inc.
5 percent owned by Sumitomo Corporation
President Tomoyuki Arakawa
Employees 4,660 as of June 2013
Main customers Toyota, Ford, GM, Honda and Chrysler
Plants
  1. Apodaca City, Nuevo Leon, Mexico (DNMX headquarters)
  2. Guadalupe City, Nuevo Leon, Mexico
  3. Silao City, Guanajuato, Mexico
Silao Site area Land: 266,000 square meters
Building: 25,600 square meters
Addition: 30,600 square meters
Total Building: 56,200 square meters
Initial Investment US$57.0 million
Additional Investment US$51.4 million
Total investment US$108.4 million
Employees 850 (projected for 2015)

DNMX plant locations


Image of DNMX Silao Plant after expansion