Denso Group (China) FY2007-FY2008

Business Highlights

Powertrain systems
- In January 2007, Toyota Boshoku Foshan Co., Ltd. (TBFC), a new subsidiary to make oil filters, officially started operations. TBFC was established jointly by Denso and Toyota Boshoku Corporation in April 2005. TBFC started production of oil filters for China and other Asian markets in July 2006, planning to expand production for the European market in the future. TBFC targeted sales of about 100 million yuan (about 1.5 billion yen) in 2007. (News release, January 23, 2007)

- Denso Corporation will establish a wholly owned subsidiary, "Denso (Changzhou) Fuel Injection System Co., Ltd." in Changzhou, Jiangsu, China to produce common rail systems for fuel injection devices of diesel engines, Denso Corporation announced in June 2007. With a total investment of approximately four billion yen, the new company, which is to be built in the industrial park within the city of Changzhou, will start production in July 2009, and is expected to generate sales of 18 billion yen in fiscal 2012. The new plant in China will be Denso's third overseas production facility of common rail systems, following Hungary and Thailand. Capitalized at about 2.8 billion yen, it will employ around 450 people as of 2012, and produce common rail systems for large size diesel engines in view of China's trend of tightening emission regulations. (From an article in the Nikkan Jidosha Shimbun on Jun. 19, 2007)

Climate Control
Denso Corporation announced in February 2008 that Denso and Yangzhou Jiexin Auto Air-Conditioner Co., Ltd. (Jiangsu Province, China) agreed to establish a joint-venture corporation to produce bus air conditioning systems in China. The two companies plan to start supplying these products to local bus manufacturers in April, 2008, targeting sales of 5 billion yen in 2010. The joint-venture company will be called Yangzhou Jiexin Denso Air-Conditioner Co., Ltd. (tentative name) and be located within the site of Yangzhou Jiexin Auto Air-Conditioner in the Jiangdu Industrial Zone, Jiangsu Province. It will be capitalized at 1.8 million dollars (approximately 200 million yen) with 50 percent of the shares owned by Yangzhou Jiexin Auto Air-Conditioner; 30 percent by Denso (China) Investment Co., Ltd., Denso's regional headquarters in China; and 20 percent by GAC Corporation, Denso's automotive and industrial air conditioner production company in Azumino City, Nagano Prefecture, Japan. (From an article in the Nikkan Jidosha Shimbun on Feb. 26, 2008)

Other area
- In 2008, Shimizu Industry Co., Ltd., a company under the Denso Group, invested in and reorganized Tianjin Peng Ying Plastics Co., Ltd. to establish Tianjin Shimizu Peng Ying Plastics Co., Ltd. to manufacture plastic molding parts in Tianjin, China. Tianjin Peng Ying Plastics Co., Ltd. was created by Kuroda Kagaku Co., Ltd. in 2007.