4. DENSO (Hangzhou) Co., Ltd. established
Denso (Hangzhou) Co., Ltd. is a joint venture between Denso Corporation (Japan) and Denso (China) Investment Co., Ltd., located at No. 7277, Jiangdong Third Road, Qiantang District, Hangzhou, Zhejiang Province. The company was established in May 2011, with a total investment of $90.3 million. The site covers an area of 90,000 square meters, with a building area of approximately 40,000 square meters, and has 650 employees.
The company primarily produces small motors and wiper systems for mid-range and high-end automobile models, with an annual production capacity of about 25 million units. Major customers include Toyota, Honda, Cadillac, Jaguar Land Rover, and Hongqi (Red Flag). The company also supplies products to local customers in Qiantang District such as Ford and Guangzhou Automobile.
1. Establishment of the Company
Over a decade ago, Asmo Co., Ltd., which was then a subsidiary of Denso Corporation, conducted an inspection tour in China as part of its growth strategy to establish a subsidiary in the Zhejiang Province, focusing on the East China market and extending to the entire country. This coincided with the 30th anniversary of the friendship agreement between Zhejiang Province and Shizuoka Prefecture (the location of Asmo Co., Ltd.) in 2012. During this period, both governments actively facilitated mutual visits and exchanges between enterprises from the two countries. During these exchanges, then Governor of Zhejiang Province, Mr. Xia Baolong, Secretary of the Hangzhou Municipal Committee of the Chinese Communist Party, Mr. Huang Kunming, and Director Zhou from Xiaoshan Development Zone visited Asmo in Japan. This exchange, characterized by the alignment of "Heaven's timing, geographical advantage, and human harmony," led to the establishment of Asmo (Hangzhou Xiaoshan) Micro Motor Co., Ltd. (AHX).
Grounded and Steady Growth
As a key introduction project in Hangzhou, Zhejiang Province, AHX attracted significant attention from various government departments, receiving extensive support such as one-stop approvals and the assignment of specialized personnel to ensure efficient coordination and promotion. As a result, the company managed to achieve land acquisition, factory construction, equipment installation, and commencement of operations within just 15 months from its establishment. This became a pioneering example of rapid company setup and mass production in Hangzhou.
In August 2012, AHX's first product, the "EPS (Electric Power Steering Motor)," rolled off the production line, and in 2013, the company's sales exceeded 200 million RMB. The entire staff united their wisdom and efforts to promote QCDS (Quality, Cost, Delivery, and Service) production management activities to meet customer needs while actively preparing for new business ventures. They fostered a corporate culture that is "bright, enjoyable, and proactive."
From 2014 to 2018, AHX sequentially introduced and commenced mass production of the ABS (Anti-lock Braking System Motor), TC30 (Throttle Motor), SF Mod (Power Seat Motor), and ARM (Wiper Arm). The company achieved advanced localization by integrating various component processing techniques (pressing, die casting, anodizing, painting, mold making), and established a consistent production and logistics system that spans from component processing to semi-finished product assembly and final product assembly, significantly increasing the added value of its products.
Within five years of its establishment, AHX steadily solidified its management system and manufacturing foundation. The production volume exceeded 10 million units, with sales reaching 750 million RMB and achieving a double-digit profit margin. In terms of talent development and workplace activation, AHX won the Gold Award at the All-Asmo ACTIVE QC Circle Competition for two consecutive years in 2016 and 2017. Additionally, in 2017, it also received the Gold Award at the Denso Group ACTIVE MTG Company Presentation Competition.
In 2018, AHX was awarded the titles of "Harmonious Labor Relations Unit of Hangzhou" and "Workers' Pioneer of Hangzhou." Moreover, it was honored with the "Top 50 Industrial Enterprises" award by the Dajiangdong Industrial Cluster (now Qiantang District) in Hangzhou.
Asmo (Hangzhou Xiaoshan) Micro Motor Co., Ltd. Renamed to Denso (Hangzhou) Co., Ltd. (DMHZ) - "Embracing Change and Accelerating Further Growth"
To further enhance the performance and reliability of motors that constitute the systems for electrification and autonomous driving, Asmo Co., Ltd., the parent company, was integrated into Denso Corporation in 2018. Following this strategy, the three Asmo subsidiaries in China were rebranded as Denso subsidiaries in 2019. In October of the same year, Asmo (Hangzhou Xiaoshan) Micro Motor Co., Ltd. (AHX) was renamed Denso (Hangzhou) Co., Ltd. (hereafter DMHZ), and a grand renaming ceremony was held.
A New Journey Towards a New Path - This renaming marked both a challenge and an opportunity to deeply integrate Denso's systems for quality, safety, and profitability.
With strong support from the business division and the China region, DMHZ actively embarked on a model shift and upgrade of its products and production lines to achieve further development. In 2019, DMHZ successfully launched its first highly automated, high-speed wiper motor production line. Concurrently, planning and deliberations for a comprehensive factory on the Phase 2 site began, alongside the commencement of clean factory renovations at the Phase 1 site, heralding the era of mechatronic brushless motors.
In January 2020, the COVID-19 pandemic struck, disrupting both social life and production supply rhythms. Over the subsequent three years, the impact of COVID-19 and issues such as semiconductor shortages heightened the risk of material procurement, while changes in customer needs became more drastic. This led to serious challenges in production, delivery, and employee health management within the company.
Despite these harsh conditions, all employees united under the belief of "standing together to overcome difficulties," working together to hone their skills and technological capabilities, enhancing resilience, and actively promoting work style reforms. Using remote tools like VR and TEAMS, they coordinated and supported each other with related companies in Japan and within China. From 2020 to 2022, they successfully introduced new mechatronic products such as the SJ66 (Blower Motor), SJ77 (Fan Motor), and DDA1.5 (2-system Electric Power Steering (EPS) Motor), along with high-speed and complex automated production lines. Additionally, the new Denso product DDA2.0 (2-system Electric Power Steering Motor), which holds a world-first invention patent, is scheduled for equipment production in 2023 and mass production in 2024.
Not only in production lines, but with the smooth completion of the Phase 2 comprehensive factory in August 2022, they also realized integrated AGV automation in logistics, covering components → assembly lines → warehouses. This transformed the factory from the labor-intensive manual work of its early days to an automated, AI-smart model. The products have been upgraded from traditional "motors" to "mechatronic motors" controlled by chip-equipped boards. The business has also evolved from a single motor division to a complex hub with multiple divisions, including the Chassis & Safety Systems Division.
"The fragrance of plum blossoms comes from the bitter cold," all efforts have borne fruit. With the introduction of new products and market expansion, despite the overall economic downturn, sales have increased at an annual rate of 15% to 20%, reaching 1.76 billion RMB in 2018, which is 2.3 times higher, and the plan for 2023 is to exceed 2 billion RMB.
DMHZ's proactive model shift and rapid growth have been praised by governmental agencies in Zhejiang Province, Hangzhou City, and Qiantang District. In 2020, DMHZ received the "Lean Production Award" from SGM. In terms of company contributions, it was awarded the titles of "Key Enterprise of the Kunpeng Plan" by Hangzhou City and "Leading Enterprise" by Qiantang District. For several consecutive years, it has been recognized as a "Workers' Pioneer" and "Model Collective" in Hangzhou. In terms of epidemic prevention measures, it was awarded the "Ankang Cup Advanced Enterprise."
In the area of talent development, DMHZ actively strengthened industry-government-academia collaboration and obtained qualifications such as "University Student Internship Model Base," "Skilled Master Workshop," and "National Skills Certification Center" in Qiantang District. Including Japanese expatriates, two individuals were recognized as Category D high-level talents in Hangzhou City, three as Category E, and over 50 as high-skilled talents (senior workers, technicians, and senior technicians).
Regarding the national initiatives on carbon neutrality and digitalization, leveraging the strength of the group, DMHZ capitalized on its strengths of "leading the tide" and "pioneering innovation." In 2023, it was recognized as a "Green Factory of Zhejiang Province" and a "Digitalization Model Project of Zhejiang Province," and also smoothly launched the "Smart Factory" project in Hangzhou.
In August 2022, DMHZ celebrated its "10th Anniversary of Operation" with a series of events themed "Energetically Advancing, Still Young, Persistently Moving Towards the Future." (Some events were postponed to 2023 due to COVID-19 restrictions.)
"10th Anniversary of Denso (Hangzhou) Co., Ltd." In 2022, Denso (Hangzhou) Co., Ltd. (formerly Asmo (Hangzhou Xiaoshan) Micro Motor Co., Ltd., hereafter DMHZ) celebrated its 10th anniversary of operation and embarked on a new journey of company development. To celebrate the achievements of all employees' relentless efforts over the past decade and commemorate the years spent together, a series of 10th-anniversary events were planned and organized. (Some events were postponed to 2023 due to the impact of COVID-19 restrictions.)
At the 10th Anniversary Celebration and Mobilization Conference, General Manager Ichikawa delivered a speech, celebrating DMHZ's 10th anniversary of operation and expressing heartfelt gratitude to all employees for their hard work. He encouraged everyone to continue contributing to the company's ongoing development. The conference also recognized outstanding workplaces and employees, boosting morale by acknowledging each individual's diligent efforts. To create lasting memories of the journey with the company, commemorative cards signed by the General Manager and Denso logo-engraved souvenirs were distributed to all employees, including past expatriates. Employees felt the warmth from the company and took pride in being part of DMHZ.
In June 2023, when Hori HBU from the Motor Division visited, a commemorative tree planting was held to celebrate the 10th anniversary of DMHZ's operation, during which he gave a congratulatory speech. Following the planting of Hangzhou's city flower, the "Osmanthus," at the inaugural ceremony in 2013, and the planting of Hangzhou's city tree, the "Camphor Tree," during the renaming ceremony in 2019, this 10th-anniversary celebration featured the planting of the "Yoshino Cherry," symbolizing the spirit of DMHZ's "Leading the Tide."
During his stay, Hori HBU engaged in dialogues with DMHZ management to deepen his understanding of the Chinese market, Hangzhou, and DMHZ. He also shared his insights based on his career, offering valuable advice such as thinking positively about work and taking initiative, taking responsibility for nurturing subordinates, and understanding changes from a global perspective in the external environment. He encouraged everyone to leverage regional and personal strengths, seek business opportunities, and continuously enhance competitiveness.
In September 2023, employee trips, which had been suspended due to the pandemic, were resumed. Seven courses were offered, ranging from Anji and Xiangshan within Zhejiang Province to Lijiang-Dali, Gansu-Qinghai, and Hainan. These trips not only allowed employees to relax in beautiful landscapes but also deepened interactions among colleagues, fostering a sense of unity.
With the series of 10th-anniversary events now concluded, the story of DMHZ continues. For the next twenty, thirty, forty years, all employees will carry the Denso spirit of "Innovation, Trust, and Total Intelligence & Total Strength," and together as ONE TEAM, we will shape the future of DMHZ!
"Leading the Way, Challenging the Future"
Reflecting on the past decade, there have been various difficulties, but overall, good results have been achieved. However, from the perspective of long-term and sustainable development, there are also crises and challenges. With the rapid rise of EVs accompanying electrification, traditional automotive companies are still in the midst of a model shift, and the overall market competition is intensifying. In the Chinese market, the challenges include regional self-sufficiency, strengthening local technology and skills, and improving responsiveness to changes.
For DMHZ, continuous enhancement of corporate competitiveness, expansion of core product sales, and planning of new businesses and products by 2035 are key to the company's survival. In 2023, the grand "Asian Games" was held in Hangzhou, Zhejiang Province, and the city's slogan of "Youthful Energy, Intelligent Innovation, Passionate Openness" made a global impression. It was a great honor that a DMHZ employee (a recipient of the Hangzhou May 1st Labor Award) was selected as a torchbearer for the Asian Para Games.
DMHZ will carry forward the Denso spirit of "Innovation, Trust, and Total Intelligence & Total Strength," leveraging the strengths of its location in Hangzhou, Zhejiang Province, to create and pass down a unique "DMHZ culture." By enhancing corporate competitiveness in all aspects, including talent, organizational strength, products, and technology, DMHZ aims to achieve both company development and employee self-realization. This will contribute to the continuous development of the Denso Group and the advancement of the Chinese automotive industry.