Tokyo - DENSO Corporation today announced that it had spun off its sales division from its manufacturing and sales company in Thailand, DENSO (Thailand) CO., LTD. (DNTH), to establish a new sales company. DENSO International (Thailand) Co., Ltd. (DITH) sales will begin in the Thai domestic market in April 2003.
Established in December 2002, the new company began with an initial capital investment of approximately 280 million yen (US$ 2.3 million). Sales of approximately 53 billion yen (US$4.4 billion) and 270 employees are projected for fiscal year 2005.
"Currently, DENSO operates several manufacturing companies that produce automotive products such as electric components, car air conditioner and common rail systems in Thailand. We hope by integrating the sales operations within the new company we will enhance business activity in Thailand. In addition, in case that we establish new manufacturing companies in Thailand in the future, the new company is responsible for their sales activity" said Hiroshi Uchiyama, senior managing director of DENSO Corporation and in charge of DENSO Sales Group.
Uchiyama continued, "At the new company, we also plan to centralize the planning of some administrative functions including human resources, accounting, information system affairs, and general administration. The efficiency of those tasks will be improved through this centralization process."
According to Uchiyama, the number of cars produced in Thailand has rapidly increased from 160,000 units in 1998, shortly after the Asian economic crisis, to 460,000 units in 2001. Thailand is expected to further expand its vehicle market to become the car industry hub for ASEAN.
Currently, DENSO operates five production companies in Thailand.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs 87,000 people in 31 countries, including Japan. Consolidated global sales for the fiscal year ended March 31, 2002 totalled US$18.1 billion (*3) (2,401,098 million yen or 20.7 billion Euros). DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges.
*1 DENSO International Asia PTE. LTD. (DIAS) is regional headquarters for ASEAN and Taiwan.
*2 This new sales company is not responsible for sales activity of DENSO Tool & Die (Thailand) CO., LTD.
*3 Figures for the fiscal year ended March 31, 2002 include the effect of an irregular 15-month reporting period, due to 45 overseas subsidiaries and overseas affiliates changing their year ends to March 31 from December 31.
*4 Exchange rates used are 120 yen per one dollar, 2.8 yen per one baht at the end of December 2002.