DENSO to Relocate Its Automotive Air Conditioner Production Company in Guangzhou, China
Kariya (Japan) - DENSO Corporation will relocate Guangzhou DENSO Co., Ltd. (DMGZ), a production company in Zengcheng, Guangzhou, China, to another location in the same city starting from March 2013. The relocation is planned to be completed by December 2013. This relocation is at the request of the Chinese government, which is planning to redevelop eastern Guangzhou. The company will use this relocation request as an opportunity to expand the DMGZ's plant size to about 1.4 times its current space.
"DENSO will take this opportunity to increase Guangzhou DENSO's production capacity of automotive air conditioning systems, condensers, and radiators to anticipate and meet the demand from customers in China," said Akio Shikamura, senior executive director of DENSO's Thermal Systems Business Group.
Construction of DMGZ's new plant is scheduled to begin in February 2012 and be completed by January 2013, with a total investment of approximately 6.3 billion yen (approximately US$81 million*) by 2013.
DENSO produces automotive air conditioning systems and related components at nine locations in China, and a new car air conditioner plant in Changchun will also start operations in December 2011.
In the Chinese auto market, where vehicle production and sales are expected to grow, DENSO will continue to offer automotive air conditioning systems and other products in response to increasing production by automakers.
Profile of DMGZ (after the relocation)
| 1.Name | :Guangzhou DENSO Co., Ltd. |
|---|---|
| 2.Location | :Zengcheng Economic and Technological Development Zone, Guangzhou, China
(about a 15-minute drive from the current location) |
| 3.Management representatives | :Chairman: Akio Shikamura (while serving as a Senior Executive Director of DENSO Corporation)
President: Shinichiro Yamaji |
| 4.Establishment | :May 2003 |
| 5.Ownership | :60 percent owned by DENSO (China) Investment Co., Ltd. and 40 percent by Guangzhou Automobile Group Component Co., Ltd. |
| 6.Sales | :45 billion yen
(planned for fiscal 2015, approximately US$579 million) |
| 7.Employees | :Approx. 1,050 (approx. 900 before the relocation) |
| 8.Business description | :Manufacturing automotive air conditioning systems, condensers, and radiators |
| 9. Site area | :Approx. 133,800 m2 (approx. 74,600 m2 before the relocation) |
| 10. Total floor area | :Approx. 57,000 m2 (approx. 39,800 m2 before the relocation) |
* Exchange rate used is 77.75 yen to the US one dollar, at the end of October 2011 for convenience only.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electric, electronics and information and safety. Its customers include all the world's major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 35 countries and regions (including Japan) and employs approximately 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2011, totaled US$37.7 billion. Last fiscal year, DENSO spent 9.3 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.denso.com.