TOKYO - DENSO Corporation will reinvest approximately 32 million euro (US$ 28 million or 3.5 billion yen) by 2003 in DENSO Manufacturing Hungary Ltd. (DMHU) in Székesfehérvár, Republic of Hungary. DENSO will implement a capital increase of DMHU by 9 million euro (US$ 8 million or 1.0 billion yen) in June 2002.
DMHU currently produces diesel injection pumps and supplies them to the plant of Isuzu Motors Limited in Poland. With this investment, DMHU is constructing a new building at the facility to be completed by June 2002. In the new building, DMHU will begin to manufacture variable camshaft timing (VCT) in August 2002, and other additional products including valves for engine control by the end of 2003. VCT will be supplied to several automakers including Toyota and Volkswagen.
"DMHU plans to increase the employee number by 350 by 2006 and have an added sales by 60 million euro (US$ 52 million or 6.6 billion yen) in fiscal 2006 by manufacturing these additional products," said Hiromi Tokuda, director of DENSO Corporation.
VCT is one of DENSO's products that holds world's number-one share. Tokuda also said "In addition to Hungary expansion, DENSO will start manufacturing VCT in Mexico in February 2003. With this growth, we will be able to supply VCT globally in three regions, Japan, Europe and America".
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 85,000 people in 29 countries and regions, including Japan. Consolidated global sales for the year ended March 31, 2001 totaled US$16.2 billion. DENSO common stock is traded on Tokyo, Osaka and Nagoya stock exchanges in Japan.
DENSO MANUFACTURING HUMGARY LTD.
||DENSO Manufacturing Hungary Ltd.
||Date of Establishment:
||July 15, 1997
||Székesfehérvár, Republic of Hungary
(63 km from Budapest in the Southeast direction)
||85 million euro (US$ 73 million or 9.3 billion yen)
|| ||(after increase):
||94 million euro (US$ 81 million or 10.3 billion yen)
||Wholly owned by DENSO Corporation
||Electrically controlled distributor type injection pump
(as of March 2002)
||60 million euro (US$ 52 million or 6.6 billion yen)
||220,000 square meters
||26,400 square meters (excluding the new building)
37,400 square meters (including the new building)
||About 600 (as of March 2002)