2. Guangzhou DENSO Co., Ltd. (DMGZ) established
1. Guangzhou DENSO Co., Ltd. established
In 1999, GAC Group restructured the former Guangzhou Luxury Air Conditioners Co., Ltd. and entered into a technical assistance agreement with DENSO to promote cooperation. In 2003, GAC Component Co., Ltd. used its available assets in luxury air-conditioning to jointly invest with DENSO to establish Guangzhou DENSO Co., Ltd. with a holding ratio of 40% (GAC Component) to 60% (DENSO (China) Investment (DICH)). There were numerous difficulties encountered during the restructuring process, but the visionary thinking and sincere cooperation of both shareholders led to the company’s rebirth as Guangzhou DENSO Co., Ltd.
Since its founding, Guangzhou DENSO has kept pace with the development of China's automotive industry, overcoming many challenges. Through 20 years of tireless, daily discipline, we have grown into an industry-leading auto parts company. Based on the in-house production of four heat exchangers, our main products include air conditioning units, condensers, combined heat exchangers, and heat pump modules. Guangzhou DENSO has inherited the excellent DNA of both parent companies and built a solid foundation of safety, quality, environment, and compliance, ensuring competitiveness through our technological and organizational strengths, and gaining the ability to impress our customers. We provide products and services to a number of complete vehicle manufacturers, including Dongfeng Honda (2004), Guangqi Honda (2004), GAC Toyota (2006), GAC Motor (2010), Changan Automobile, Changan Ford, Guangqi AION, and SAIC Motor. The company is working tirelessly to become a leader in the automotive parts manufacturing industry in the region and even in South China, with the goal of building China's No.1 automotive air conditioning system and heat exchanger plant.
In March 2017, we established our Chongqing Branch in Chongqing Liangjiang New Area, a national-level development zone, to promote the further development of the southwest region automotive industry, which is growing on a daily basis. In 2020, we established our Wuhan Branch in the Caidian District development zone in Wuhan, to strengthen support for Dongfeng Honda and solidify Guangzhou DENSO’s business foundation in the central region. We also established production sites in Guangzhou, Chongqing, and Wuhan, creating a supply layout covering the South China region, as well as Central China, East China, and Southwest China.
Under the DENSO Spirit of "foresight, credibility, and collaboration," our mission is to continue to be outstanding, inspire the world, and make people smile with our overflowing passion; our vision is to pursue the four "mosts" (the most up-to-date, the most advanced, the most powerful, and the most beautiful) and become the industry-leading benchmark; and our core values are communication, cooperation, efficiency, and innovation. We will do our utmost to anticipate change, maintain our unrivalled position one step ahead of others, create products that inspire the world with DMGZ’s passion and energy, and drive social progress forward.
2．Relocation to new plant
In 2011, in response to the government's call to accelerate the eastward development of the Pearl River Delta integration plan and urban development plan in Guangzhou and to build a hub, or traffic center, in eastern Guangzhou (Xintang), Guangzhou DENSO began planning the relocation of its plant from the first half of 2011, selecting a new location and designing and planning the new plant under the guidance of DENSO and GAC Component.
The new plant was located in the Zengcheng Economic Development Zone automotive industrial park, about 8 km from the old plant. Construction of the new plant started in March 2012 and was completed in February 2013. Mass production of some products started in March 2013, and the relocation of equipment was completed by the end of December that year. In this relocation, the plant area was expanded 1.4 times, with a view to a 2.5-fold increase in production volume in the future. The relocation was an opportunity to re-plan the plant layout, optimize the work flow, and improve the work environment. Expanding the production capacity at the new plant was an opportunity to introduce more advanced manufacturing technologies and develop highly efficient human resources, and to launch three "mosts" (the most advanced, the most up-to-date, and the most powerful). The new plant was transformed into a more competitive and vibrant plant, laying the foundation for further advancing the "four mosts" vision.
3. 20th anniversary event
On July 8, 2023, on the occasion of the 20th anniversary of the founding of Guangzhou DENSO, a grand commemorative ceremony with the theme "20 years of improvement and progress, building a future with a united spirit" was held at Langham Place Guangzhou Hotel. More than 1,500 people attended, including top executives from both shareholders of Guangzhou DENSO, representatives of our past and present expatriates, all our employees, and delegates of employees from the Wuhan and Chongqing plants, to look at the achievements of Guangzhou DENSO over the past 20 years, turn to the future together, and share their hopes for the next 20 years.
The ceremony opened with a spectacular light and sound show, the roar of engines making the whole venue come alive. Everyone watched a 20th anniversary PR video, sharing a taste of the 20 years during which Guangzhou DENSO took over from its predecessors, paved the way for the future, transformed and innovated, sought to be No.1, and faced challenges and took great leaps forward. Each familiar screen gave everyone a rush of excitement and further hope for a bright future. At the birthday ceremony, everyone in the hall sang Happy Birthday for Guangzhou DENSO to celebrate the company’s 20th anniversary.
The growth process of Guangzhou DENSO at 20 years old was the epitome of the vigorous development of the Chinese automotive industry. Over the previous 20 years, this industry had grown continuously and rapidly, with annual automobile production and sales volume in the country reaching 27 million units as the country moved from the traditional gasoline-powered vehicle era into the CASE era. Guangzhou DENSO also reemerged and grew during that time, and by 2022, its sales had surpassed 6 billion yuan. These achievements cannot be separated from the patronage of our customers, the tremendous support and guidance from both our shareholders, and the steady and concerted efforts of our past and present expatriates and all our employees. Guangzhou DENSO has grown little by little, and in the process, formed a corporate culture that values communication, taking on bold challenges, continuous improvement, and further refining what is already excellent. These are our most valuable assets and the foundation for our continued growth.
As we stand at this new starting point on our 20th anniversary, we must now hand over what we inherited from our predecessors to our juniors, paving the way for the future. We need to think deeply about the future, based on past experience and from a long-term perspective. Today, the automotive industry around the world is undergoing a major transformation, with accelerated development toward automated, smart, connected, and shared vehicles, and the development of smart mobility and smart transportation is also gaining momentum. At Guangzhou DENSO, we will also transform our portfolio around electrification in order to seize even more chances offered by the transformation and development of China’s automotive industry, and to create our next 20 wonderful years. To realize a mobility society that is friendly to the planet and enables all people to feel safe and happy, Guangzhou DENSO will cooperate with industry, create a synergetic value chain, promote the shift of the business model to electrification, and dedicate our strength to the development of the new energy automotive industry. To fulfill our social responsibility, we will pursue sustainable development that supports carbon neutrality by promoting solar power generation and clean production through the innovation and application of energy-saving production technologies and the improvement of energy structures.