Sanden Holdings Corporation

Company Profile

■URL

http://www.sanden.co.jp/english/index.html

■Address

20 Kotobuki-cho, Isesaki-shi, Gunma-ken, 372-8502 Japan

Business Overview

-A major manufacture of car air-conditioning systems and air-conditioning compressors, based in Gunma Prefecture, Japan. Delivers HVAC units, compressors, and climate-control air-conditioning piping systems to the VW Group, Daimler, and others.

-On June 30, 2020, the Company filed ADR procedures to reorganize its business operations, which were duly accepted. The Group is continuing to struggle under very difficult business conditions because of its slow response to rectify the unprofitable housing business, a payment of fines for violating competition laws, impairment losses incurred for making structural changes, expenses incurred for inspecting and replacing previous products, and posting allowances for bad debts in the Middle East.

-On March 1, 2021, as a way to improve its financial condition, it issued new stock shares through a third-party allocation. As a result, it announced that Hi-sense Home Appliances Group Co., Ltd. became the majority shareholder, which is a major appliance manufacturer based in China. The payment was finalized on May 31, 2021. After the allotment was completed, Hisense Japan Automotive Air Conditioning Systems Limited Liability Company, a special-purpose company to underwrite the stock, held 74.88% of the common shares.

Shareholders

-Listed on the first section of the Tokyo Stock Exchange. (As of Apr. 12, 2021)
Name or Company Name Investment Ratio (%)
BBH (LUX) FOR FIDELITY FUNDS PACIFIC FUND  7.66
The Master Trust Bank of Japan, Ltd. 6.66
Sanden Customer Stock Ownership Plan 4.70
JPMBL RE NOMURA INTERNATIONAL PLC 1 COLL EQUITY 4.08
Mizuho Bank, Ltd. 3.63
The Gunma Bank, Ltd. 3.63
Daido Life Insurance Company 2.47
Japan Trustee Services Bank, Ltd. (Trust Account) 2.11
Japan Trustee Services Bank, Ltd. (Trust Account 5) 1.52
CLEARSTREAM BANKING S.A. 1.39
Total 37.86

Products

Automotive air conditioner systems
Compressors for automotive air conditioners
-Swash plate type
-Wabble plate type
-Scroll type

HVAC units

Heat exchangers for engine
Inter coolers
Oil coolers

Heat exchangers for air-conditioning
Evaporators
Condensers
Heater cores

History

July 1943 The Company's predecessor, Sankyo Denki Co., Ltd. was established with paid-in capital of 198 thousand yen.
Mar. 1948 Started producing dynamo lamps for bicycles
Mar. 1971 Formed a technical tie-up with John E. Mitchel Co. of the U.S.A. and started producing compressors for automotive air conditioners.
Nov. 1974 Established Sankyo International (U.S.A.) Inc. in the U.S.A. (Currently Sanden International (U.S.A.) Inc.)
Dec. 1977 Established Sankyo International (Singapore) Pte. Ltd. in Singapore. (Currently Sanden International (Singapore) Pte. Ltd.)
Oct. 1982 Changed its company name to Sanden Co., Ltd.
Aug. 1989 Started operations at the No.2 plant of Sanden International (U.S.A.), Inc. in Wylie, Texas to manufacture compressors for automotive air conditioners.
May 1994 Signed a technical licensing-out agreement with Ford Motor Company (U.S.A.) on manufacturing technology for automotive air conditioner compressors.
Apr. 1995 Established Sanden Manufacturing Europe S.A. in France.
Sep. 2000 The Company and Shanghai Ek Chor General Machinery Co., Ltd. jointly established Sanden (Shanghai) Automotive Air-Conditioning Co., Ltd. in Shanghai as a manufacturing and sales base of automotive air conditioners in China.
July 2001 The Company and Behr of Germany jointly established Sanden-Behr Air-Conditioning Systems Co., Ltd. in Taito ward, Tokyo to develop and market automotive air conditioners.
Oct. 2002 Awarded Japan Quality Medal
Feb. 2004 Established a joint venture, Shanghai Sanden Behr Automotive Air Conditioning Co., Ltd., in China
Apr. 2004 Established Sanden Manufacturing Poland SP.ZO.O. in Poland.
Jun. 2004 Established a joint venture, Shenyang Sanden Automotive Air-Conditioning Co., Ltd., in China.
Sep. 2004 Sold 25% of the shares of its consolidated subsidiary, Sanden (Shanghai) Automotive Air-Conditioning Co., Ltd., to Shanghai Sanden Behr Automotive Air Conditioning Co., Ltd.
Jan. 2005 Acquired a distribution system equipment parts manufacture, Diawa Corporation (Isesaki, Gunma prefecture) and changed the corporate name to Sanwa Thermotech Co., Ltd.
Oct. 2006 Sanden International (U.S.A.), Inc. and Sanden International (Singapore) Pte. Ltd. won the Deming Application Prize.
Dec. 2007 Established the Toyohashi Plant in Toyohashi City, Aichi Prefecture and started commercial production of parts for car air conditioners.
Sep. 2008 Established a consolidated subsidiary, Sanden (Suzhou) Precision Parts Co., Ltd., in China.
Jun. 2010 Established Chongqing Sanden Automotive Air-Conditioning Co., Ltd., a subsidiary, in China.
Oct. 2011 Awarded the Demming Prize (at Sanden Vikas (India) Ltd.)
Dec. 2012 Established Sanden Manufacturing Mexico S.A. de C.V., a consolidated subsidiary.
Nov. 2013 Invested in Chongqing Huaen Industrial Co., Ltd. in China.
Jan. 2015 Merged Chongqing Huaen Industrial Co., Ltd. into Sanden Chongqing Automotive Air Conditioning Co., Ltd.
Apr. 2015 Transitioned to a holding-company structure, adopting the name Sanden Holdings Corporation.
Oct. 2015 Added a new HVAC air-conditioning-system production line at Sanden Manufacturing Poland SP.Z.O.O.
Feb. 2016 Installed additional compressor production lines at Sanden Manufacturing Poland SP.Z.O.O.
May 2016 Relocated home office to Daibiru in Akihabara, Tokyo.
Jan. 2017 Merged the operations of five subsidiaries engaged in the automotive equipment business into Sanwa Co., Ltd.; and three subsidiaries engaged in logistics system into Sanwa Fabtech Co., Ltd.
Apr. 2018 Completed construction of the production plant at Huayu Sanden Heqing New Plant in Shanghai, China, which commenced commercial production of electrical-power compressors in August.
Apr. 2019 Absorbed some of the stock shares of subsidiaries that run the automotive-equipment business and logistics-system business, and the rights and obligations that they hold in management/administration, spinning them off into Sanden Automotive Components Corporation, Sanden Automotive Climate Systems Corporation, and Sanden Retail Systems Corporation.
Jun. 2020 Filed request for a turnaround Alternative Dispute Resolution (ADR) to the Japanese Association of Turnaround Professionals.
May. 2021 Filed ADR procedures to reorganize business operations.
Issued new shares in Kaishin Japan Automotive Air Conditioning Systems Company G.K. through a third-party allocation.

Supplemental Information 1