Denso Group (China) FY2011

Business Highlights

Business overview
-In China, the Company are bolstering sales activities targeting local manufacturers through the development of low-cost products. The Company will reinforce the activities of its technical center in Shanghai to meet anticipated demand for energy-efficient vehicles and vehicles powered by new energy sources stemming from environmental regulations.

Climate Control
-Denso Corporation said on November 17 that Guangzhou Denso Co., Ltd., its Chinese subsidiary for production of automobile air-conditioners based in Zengcheng, Guangzhou, will relocate its plant to expand   its production capacity. The plant will be moved to another location in the same city with an investment of 6.3 billion yen at the request of the Chinese government, which is planning to redevelop the area where the existing plant is located. With an increased capacity after relocation, Guangzhou Denso is expecting to raise its sales 28.5 percent to 45 billion yen by 2015 from the level in 2010. Denso Corporation already has nine production facilities for air-conditioners in China. It is planning to add a new plant in ChangchunJilin Province, which is slated to go into operation in December 2011. This will bring the number of production sites in China to ten in total by the end of this fiscal year March 2012. The additional capacity at a relocated Guangzhou Denso will contribute to boosting total production capacity in China. Construction of the new plant is scheduled to start in February 2012, and the building will be completed in January 2013. The moving is scheduled for the period from March 2013 to the end of December. Relocation will be conducted step by step while production is continued. (From an article in the Nikkan Jidosha Shimbun on November 18, 2011)

-Tianjin Fawer Denso Air-Conditioner, which is a joint venture between the Denso Group and Fawer Automotive Parts Co., Ltd. broke ground on its new plant site at the Changchun Xixin Economic & Technological Development Zone, Jilin Province on May 18, 2011. Investment in this project is expected to reach 177 million yuan. The Changchun Plant, which will have a building area of 16,000 square meters, is scheduled to be completed in early 2012. The joint venture plans to ensure the capacity to manufacture 560,000 automotive air conditioners by 2015, aiming to generate 1.2 billion yuan in annual sales. Addition of the new production base will improve the delivery efficiency in supplying its products to Sichuan FAW Toyota Co., Ltd. Changchun Fengyue Company, FAW-VW and FAW Car. (From a press release, May 20, 2011)

Body parts

-Denso (China) Investment Co., Ltd. (DICH) and ASMO Co., Ltd. will jointly establish a new manufacturing company in China in February 2011. The new facility, based in Hangzhou, Zhejiang Province, will manufacture automotive small motors and related products, starting in August 2012. The 18.1 million USD (1.44 billion yen) venture will be 90 percent owned by ASMO, with DICH holding the remaining stake. In 2016, the joint venture plans to generate sales of 8.3 billion yen and employ 660 workers. The total investment amount will be 2.21 million RMB (2.78 billion yen). (From a press release on January 19, 2011)


R&D Facility

Name of the facility Overview
Denso Shanghai Technical Center Providing support to develop diesel common rail systems and navigation systems
Denso Software Shanghai Co., Ltd. Research and develop automotive software, eg. navigation software development 
Denso Software shanghai Co., Ltd. Xi'an Branch Research and develop automotive software, eg. navigation software development 

Investment Activities

Investment in 2011

-As the market is rapidly expanding, especially in emerging nations, Toyota is reinforcing its production operations.  In response, the suppliers have decided to enhance their production capacities.  Denso, which plans facility investment of 177 billion yen, will put in 90 billion yen, more than a half, in Japan, 10 billion yen in North America, 20 billion yen in Europe and over 50 billion yen in other regions, mainly ChinaIndia and Brazil.  (From an article in the Nikkan Jidosha Shimbun on August 5, 2011)