1. Expansion of the thermal business

[6] Selling the NDBC Betim Plant to MMST

As mentioned earlier, NDBC had already been producing HVAC systems for Fiat at its plant in Betim, Brazil, but MMCL received orders for Fiat’s next model, the PALIO, as a result of a competitive bid.
Consequently, MMCL established Magneti Marelli Sistemas Termicos do Brasil (MMST) as a Brazilian subsidiary in 1999. The following year in February 2000, DNBR transferred the Betim Plant lease rights to MMST, and sold off some of the equipment.
At the same time, MMST had been looking to build a new plant. Although MMST had been investigating the production of cockpit modules as a new business, there were several challenges it needed to overcome. First off, the rental plant did not have enough room to be out-fitted with any new equipment, because it had been equipped with injection molding machines in addition to HVAC assembly equipment. Meanwhile, other problems included level differences inside the plant that made it difficult to expand the buildings, the plant was inconvenient because it was divided into two buildings, and permission from the plant owner was required to further improve the land.
MMST therefore constructed its own plant with a production area of 22,000 m2 in the city of Betim, and started producing HVAC systems and resin molded parts in 2001. That same year DENSO acquired MMCL, thereby also bringing MMST of Brazil under the DENSO umbrella.
At this point, DENSO and MM of Italy had cooperated with each other for the past 10 years since concluding a comprehensive agreement in 1990. As 2000 marked the 11th year of their partnership, the two companies had entered a period that required a review of their relationship. Consequently, DENSO decided to acquire MMCL from MM when their agreement came to an end. In 2002, MMST changed its name to DENSO SISTEMAS TERMICOS do BRASIL LTDA. (DTBR), at which point DTBR also took over the new plant.