Denso Group (China) Business Report FY ended Mar. 2014

Business Highlights

New Company

-In 2013, Denso Corporation and Toyota Industries Corporation announced that they have jointly established Yantai Shougang TD Automotive Compressor Co., Ltd., in Yantai, Shandong Province, China to produce car air-conditioning compressors. The new company already commenced operations in December 2013. It is capitalized at JPY 3.68 billion, of which 50.1 percent was invested by Toyota Industries, 29.9 percent by the Shougang Group, and 20.0 percent by Denso (China) Investment. The joint venture currently has 750 employees. The plant’s annual production capacity is expected to reach 2 million sets by 2015. (From news releases issued by multiple sources on January 20, 2014)


R&D Facility

Facility Name Overview
Denso Shanghai Technical Center

Provide support to develop diesel common rail systems and navigation systems.

Denso Software Shanghai Co., Ltd. Research and develop automotive software, e.g. navigation software development 
Denso Software Shanghai Co., Ltd. Xi'an Branch Research and develop automotive software, e.g. navigation software development 

New Products

New Diesel Common Rail System

-DENSO Corporation announced that it has developed a new diesel common rail system with the world’s highest injection pressure of 2,500 bar. The company redesigned the fuel injectors, fuel pumps, and the common rail to generate a higher fuel injection pressure. The increased fuel injection pressure improves ignition and combustion efficiency, resulting in cleaner exhaust emissions with particulate matter and nitrogen oxides reduced by up to 50 percent and 8 percent, respectively. The new system also improves fuel efficiency by up to 3 percent. Production of the new common rail system will begin later this year for diesel engines on passenger and commercial vehicles. Denso intends to boost supply volume from 1.5 to 2 million units annually. (From a press release on July 1, 2013)

Investment Activities

Domestic Investment

-In November 2013, Toyota Industries announced that it will start production of automotive air conditioning compressors at its new plant in the Kunshan Economic and Technological Development Zone in Jiangsu province by October 2014. The supplier will transfer facilities from the current plant to this new plant gradually by 2016. The annual production capacity will increase from the current 0.5 million units to 1.5 million units. A total of CNY 357 million is expected to be invested in the new plant. The plant will be constructed as a base for TD Automotive Compression Kunshan Co., Ltd. (TACK). TACK supplies compressors for Toyota, Nissan, Shanghai GM, Changan Ford, among others.

-In August 2013, Denso started operations at its automotive air conditioner plant in Foshan, Guangdong province. This is the company's 11th plant in China. Main components like heater cores and evaporators are supplied from other plants. The new plant is in charge of the final assembly process of in-vehicle units called "HVAC units" and supplies them to automakers in neighboring areas. CNY 50 million was invested in this 8,000-meter-square plant on a 20,000-meter-square plot.