TOKYO - Kyosan Denki Co. Ltd. in, Ibaraki prefecture and DENSO Corporation, Kariya City, Aichi prefecture today jointly announced that the two companies would establish a North American manufacturing company in Mt. Sterling, Ky. and a Thailand manufacturing company to produce automotive components for North American and Thai/Asian car manufacturers.
The new companies--Kyosan DENSO Manufacturing Kentucky, LLC (KDMK) is expected to employee 230 people by 2008 and represents a US$14.7 million (1.8 billion yen) investment in North America and SIAM KYOSAN DENSO CO., LTD. (SKD) is expected to employee 230 people by 2008 and represents a 500 million Baht (1.3 billion yen) investment in Thailand. Kyosan Denki will own 70 percent of the limited liability partnership and DENSO, 30 percent at each company.
In North America, Kyosan Denki Manufacturing America (KYDA), a subsidiary of Kyosan Denki Co. Ltd., will transfer production of automotive fuel systems, fuel cut-off valves, and on-board refuelling vapour recovery valves to the new facility of KDMK in Mt. Sterling by the beginning of April 2003. KDMK will also start producing fuel pump modules and fuel filters in March 2004, suction filters in 2005, and pressure regulators in 2006.
In Thailand, SKD will produce fuel filters and solenoids for diesel-powered engines, in addition to fuel pump modules, fuel filters, suction filters and pressure regulators for gasoline engines. The production will start in 2004.
Kyosan Denki Co., Ltd. which is headquartered in Ibaraki prefecture, Japan. The company, which produces components for fuel supply systems, fuel filtration systems and fuel control systems for the automotive industry, employs 1,333 people. It’s consolidated net sales for the fiscal year ended March 31, 2002 totalled US$223 million.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components. Worldwide, the company employs 87,000 people in 30 countries, including Japan. Consolidated global sales for fiscal year ended March 31, 2002 totalled 2,401.1 billion yen (US$18.1 billion). DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan.
* 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.
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