1. Expansion of the thermal business

[2] Opening the NDBC Betim Plant and Pinda Plant

Around the time the new air conditioner plant was built, there was a noticeable move towards production rationalization among automobile manufacturers, and the demand for just-in-time supply systems and logistics cost reductions increased among suppliers as well.
Upon placing an order for a new model of the UNO, Fiat therefore asked NDBC to produce the system in the area near the Fiat Betim Plant in Minas Gerais, in the southeast of Brazil. This request was made to address just-in-time delivery and to reduce logistics costs for HVAC systems, which have poor transportation efficiency due to their large size.

In part due to the need to receive approval from DENSO Headquarters, it would have taken time for NDBC to build its own full-scale plant. However, using a rental plant would allow NDBC to respond quickly to Fiat’s requests, and to minimize investment, even with an opaque outlook for future order receiving trends and production scales. Consequently, NDBC leased a rental plant that was just over 10 minutes away by car from the customer’s plant in the Betim area, and commenced production in 1993.

NDBC also received an HVAC order from Volkswagen for its Gol, and leased a rental plant in the city of Pindamonhangaba, fairly close to São Paulo, and began operations at the Pindamonhangaba Plant (commonly called the Pinda Plant) in 1994.