Tokyo - DENSO Corporation today announced that it will establish a joint venture to produce air conditioners for automobiles and buses, radiators with Guangzhou Automobile Group Component CO., LTD., the auto parts supervising department of Guangzhou Automobile Industry Group CO., LTD., in Guangzhou, Guangdong, China.

DENSO (China) Investment CO., LTD., DENSO's wholly-owned holding company in China, will provide 60 percent of the capital; Guangzhou Automobile Group Component CO., LTD. will provide the remaining 40 percent. The new company, named GUANGZHOU DENSO CO.,LTD., will be established in May 2003.

"DENSO has supplied car air conditioners to customers throughout the nation from its production companies located in the northern part of China (Yantai and Tianjin) since 1999,?Esaid Hiroshi Uchiyama, senior managing director of DENSO Corporation and in charge of DENSO Sales Group. "DENSO established Guangzhou company for business expansion into southern China.?E

Currently, DENSO operates six production companies in China:

•  Yantai Shougang DENSO Co., Ltd., Yantai, Shandong Province, People's Republic of China (business lines: manufacture and sale of air conditioners,; 30 percent DENSO ownership; 270 employees); •  Tianjin DENSO Engine Electrical Products Co., Ltd., Tianjin, People's Republic of China (business lines: manufacture and sale of alternators and starters; 40 percent DENSO ownership; 435 employees); •  Chongqing DENSO Co., Ltd., Chongqing, People's Republic of China (business lines: manufacture and sale of magnetos, CDI amplifiers and ignition coils; 50 percent DENSO ownership; 113 employees); •  Tianjin DENSO Electronics Co., Ltd ., Tianjin , People's Republic of China (business lines: manufacture and sale of automotive electronic control components; 85.9 percent DENSO ownership; 63 employees); •  Tianjin DENSO Air-Conditioner Co., Ltd ., Tianjin, People's Republic of China (business lines: manufacture and sale of air conditioners; 51 percent DENSO ownership; 216 employees), and •  Tianjin ASMO Automotive Small Motor Co., Ltd., Tianjin, People's Republic of China (business lines: manufacture and sale of small motors; 11.25 percent DENSO ownership; 576 employees).