Tokyo - DENSO Corporation today announced that on March 7 it established a joint venture with Hanshin Electric Co., Ltd. as an initial base for producing automobile ignition coils in China. The new joint venture-Wuxi DENSO Hanshin Automotive Products, Co., Ltd.-will be located in the city of Wuxi in the province of Jiangsu, China. The initial capital investment will be approximately US$20.6 million (2.1 billion yen), and the new company will begin commercial production in January 2007.
Wuxi DENSO Hansin Automotive Products will produce two types of ignition coils: a stick coil with a cylindrical magnetic circuit, and a plug-top coil, which has a square magnetic circuit. The stick coil has a magnetic circuit that fits into the plug-hole of an engine, increasing the available engine space. The plug-top coil has a magnetic circuit on its upper cover, means it can produce more power and allows greater flexibility in plug-hole size.
"Because of the growing demand for electronically controlled engines for automobiles and increased production by automotive manufacturers in China, DENSO and Hanshin Electric decided to jointly produce ignition coils in China," said Hiromi Tokuda, managing officer of DENSO's Powertrain Control Systems Business Group. "This allows us to improve product lineup and differentiation to meet customer needs. We'll supply these products to auto manufacturers conducting business in China."
Wuxi DENSO Hanshin Automotive Products is DENSO's 14th and Hanshin Electric's first production base in China.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world's major carmakers. Worldwide, the company employs 95,000 people in 31 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2004 totaled US$24.2 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges. For more information, go to www.globaldenso.com
Company Profile
*Exchange rates used are 102 yen per one dollar, at the end of January 2005.
**100 percent DENSO-owned regional headquarters for China
Profiles of the Investing Companies
Hanshin Electric Co., Ltd.
*Exchange rates used are 102 yen per one dollar, at the end of January 2005.
DENSO (China) Investment Co., Ltd.