Toyota Industries and DENSO Establish Automotive Air-Conditioning Compressor Manufacturing Company in China

Jan 16, 2014

KARIYA (Japan) - Toyota Industries Corporation (TICO) and DENSO Corporation (DENSO) have established a new company, Yantai Shougang TD Automotive Compressor Co., Ltd. (YST), in Yantai City, Shandong Province, People's Republic of China, for the manufacture of automotive air-conditioning compressors in response to the growing Chinese automobile market. The new company commenced operations from December 2013.

YST succeeds the manufacturing for the compressor business split off from Yantai Shougang DENSO Co., Ltd. (YSD), and plans to produce 2 million compressors in fiscal 2015.

With the further growth of the Chinese market and sales expansion activities, plans are in place to produce 2.5 million compressors in fiscal 2017, with the intention to boost production capacity moving forward. In addition, YST will work to increase local procurement as it aims to improve competitiveness.

TICO will work to enhance its global production capabilities covering Japan, North America, Europe, Asia, and South America so as to respond swiftly and accurately to worldwide customer needs with the aim of further growing its business.

Details of the new company YST as are follows.

Profile of New Company

1. Name Yantai Shougang TD Automotive Compressor Co., Ltd.
2. Location Yantai City, Shandong Province, People's Republic of China
3. Start of operations December 2013 (production transferred from YSD at the start of operations)
4. Investment 3.68 billion yen
5. Ownership Toyota Industries Corporation: 50.1%
Shougang Group: 29.9%
DENSO (China) Investment Co., Ltd.: 20.0%
6. Business activities Manufacture of automotive air-conditioning compressors
7. Size of facility Site area: 67,000m2, Factory area: 40,000m2
8. Employees 750(at start of operations)
9. Production capacity 2 million units a year(Plan for FY2015)

Reference: Profile of Yantai Shougang DENSO Co., Ltd. after Establishment of New Company

1. Location Yantai City, Shandong Province, People's Republic of China
2. Establishment December 1994
3. Investment 1.35 billion yen
4. Ownership DENSO (China) Investment Co., Ltd.: 50.1%
Shougang Group: 45.9%
Toyota Tsusho Corporation: 4.0%
5. Business activities Manufacture and sale of air conditioners and cooling devices for passenger cars and specialized vehicles (construction machinery and buses)
6. Employees 200 (As of November, 2013)

FY2015 refers to the fiscal year ended March 31 2015, and all other fiscal years are refered to in a corresponding manner.