KARIYA (Japan) – DENSO Corporation announced today that it will establish a new company in Tamura-shi, Fukushima Prefecture, Japan in April, to manufacture car air conditioning systems. The new company - DENSO East Japan Corporation- will have an initial capital investment of 2.6 billion yen (approximately US$25 million). Start of operations is scheduled for January 2010. DENSO expects investment in the new company to total 16 billion yen (approximately US$153 million) by fiscal year 2015, and projects sales of approximately 30 billion yen (approximately US$286 million) in fiscal year 2015.
“To meet increasing vehicle production by Japanese car manufacturers in the Tohoku and Kanto regions as well as to establish a competitive production system in Japan, we have decided to set up a new company in Fukushima, Tohoku region,” said Sojiro Tsuchiya, senior managing director responsible for DENSO’s Production Promotion Center. “We also aim to strengthen our competitiveness with the help of the many talented people in the region.”
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.
New Company Profile
- Company Name: DENSO East Japan Corporation
- Date of Establishment: April 14, 2008 (planned)
- Address: 26 Koyodai, Funehiki-machi, Tamura-shi, Fukushima Prefecture, Japan
- Capital: 2.6 billion yen (approximately US$25 million)
- Ownership: 100 percent owned by DENSO Corporation
- Investment: Approximately 16 billion yen (approximately US$153 million projected by fiscal year 2015)
- President: Yuji Morimoto (Current president of Sankyo Radiator Co., Ltd., a subsidiary of DENSO Corporation)
- Business Description: Production of air conditioning systems
- Employees: Approximately 100 (projected for fiscal year 2009)
Approximately 400 (projected for fiscal year 2015)
- Sales: Approximately 30 billion yen
(approximately US$286 million projected for fiscal year 2015)
- Site Area: 237,000 square meters
- Building Floor Area: 39,000 square meters
*Exchange rates used are 104.78 yen per one dollar, at the end of February 2008 for convenience only. Billion is used in the American sense of one thousand million.