DENSO to Establish Joint Venture to Produce Bus Air Conditioning Systems in Jiangsu, China
KARIYA (Japan) - DENSO Corporation and GAC Corporation, a subsidiary of DENSO, have agreed with Yangzhou Jiexin Auto Air-Conditioner Co., Ltd. located in Jiangsu, China to establish a joint venture to produce bus air conditioning systems.
The DENSO Group and Yangzhou Jiexin Auto Air-Conditioner will form the new company, Yangzhou Jiexin DENSO Air-Conditioner Co., Ltd. (tentative name), in March 2008, each providing 50 percent of the capital. In April 2008, the new company will start producing air conditioning systems for bus manufacturers in China, using the plant and equipment of Jiexin Auto Air-Conditioner. The new investment will total approximately US$2.5 million.
"Further development of highways and expressways across China is expected to increase demand for intercity express buses and sightseeing buses, which have a high installation ratio of air conditioning systems," said Nobuaki Katoh, senior managing director responsible for DENSO's Corporate Center and Thermal Systems Business Group. "We target an annual sales of about 5 billion yen for the new company in 2010."
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs approximately 112,000 people in 32 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2007 totaled US$30.6 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. For more information, go to www.denso.com, or visit our media website at www.densomediacenter.com .
Company Profile of Joint Venture
|1.Name||:Yangzhou Jiexin DENSO Air-Conditioner Co., Ltd. (tentative name)|
|2.Establishment||:End of March, 2008 (scheduled)|
|3.Location||:Jiangsu Industrial Zone, Yangzhou, Jiangsu, China
(Current site of Yangzhou Jiexin Auto Air-Conditioner, approximately 300 km northwest of Shanghai)
|5.Ownership||:50 percent owned by Yangzhou Jiexin Auto Air-Conditioner Co., Ltd.
30 percent owned by DENSO (China) Investment Co., Ltd.*1
20 percent owned by GAC Corporation*2
|6.Investment||:Approximately US$2.5 million|
|7.President||:Takanobu Asai (current Chief Engineer of the Climate, Cooling and Heating Product Division)|
|8.Business Description||:Production and sales of bus air conditioning systems|
|9.Employees||:Approximately 150 (projected for 2010)|
|10.Sales Target||:Approximately 5 billion yen (approximately US$47 million*3 projected for 2010)|
Company Profile of Yangzhou Jiexin Auto Air-Conditioner Co., Ltd.
|2.Location||:Jiangdu Industrial Zone, Yangzhou, Jiangsu, China|
|4.Ownership||:100 percent owned by Grade Summit Industries Ltd.|
|5.Business Description||:Production and sales of bus air conditioning systems|
|6.Employees||:Approximately 120 (as of May 2007)|
|7.Sales||:Approximately 1.6 billion yen (approximately US$15 million*3 for 2006)|
*1. DENSO's wholly owned regional headquarters in China
*2. DENSO's 57.5% owned automotive and industrial air conditioner production company
*3. Exchange rates used are 106.40 yen per one dollar, at the end of January 2008 for convenience only.
Billion is used in the American sense of one thousand million.