― Strengthening its business foundation in the Middle East and North Africa ―
KARIYA (Japan) ― In an effort to expand the sale of aftermarket products in the Middle East and North Africa, DENSO Corporation will establish an aftermarket sales company in Dubai, United Arab Emirates in November 2010. The new company, DENSO Sales Middle East & North Africa FZE (tentative name, DSMN), will offer aftermarket products, such as spark plugs, automotive air conditioning components and bus air conditioning systems, and services in the United Arab Emirates, Saudi Arabia, Egypt, Algeria, and other Middle Eastern and North African countries. In addition, to enhance DENSO’s business foundation in this region, it will provide technical training programs for dealers and carry sufficient stock of products to promote prompt delivery.
“In many countries in the Middle East and North Africa, vehicles are used in harsh environments, therefore the supply parts are more frequently replaced with aftermarket products,” said Haruya Maruyama, senior managing director responsible for DENSO’s Sales Group. “With the number of vehicles to increase in this region, we aim to strengthen our business foundation by establishing a new company.”
The company will be capitalized at US$300,000 and fully owned by DENSO International Asia Pte. Ltd (DIAS) in Singapore. DSMN is expected to post sales of 3 billion yen in fiscal year 2011.
DENSO in the Middle East and North Africa
In the Middle Eastern and North African region, DENSO has produced automotive air conditioning systems at an affiliate in Saudi Arabia since 2001. Another company, which was set up in Morocco in April this year to produce automotive air conditioning systems, will start operations in 2011. DSMN will be DENSO’s third company and first aftermarket sales base in the region.
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, electric, 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 34 countries and regions (including Japan) and employs approximately 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2010, totaled US$32.0 billion. Last fiscal year, DENSO spent 9.1 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.com.
Profile of DSMN
1. Name (tentative name): DENSO Sales Middle East & North Africa FZE
2. Location: Jebel Ali Free Zone, Dubai, United Arab Emirates (UAE)
3. President: Toshihiko Wada (while serving as Vice President of DIAS)
4. Establishment: November 2010 (projected)
5. Capital: US$300,000 (approximately 27 million yen*)
6. Ownership: 100% owned by DIAS (Singapore)
7. Sales: 3 billion yen (approximately US$34 million* projected for fiscal 2011)
8. Employees: Approximately 20 (projected for fiscal 2011)
9. Business description: Sales and services of aftermarket products in Middle Eastern and North African countries
* Exchange rate used is 88.48 yen to the US one dollar, ate the end of June 2010 for convenience only.