KARIYA, Japan, April 26 /PRNewswire/ -- DENSO Corporation announced today that it will establish a new company in Chitose, Hokkaido, Japan to produce automotive semiconductor products. The new company-- DENSO ELECTRONICS CORPORATION -- will have an initial capital investment of approximately US$17 million (2 billion yen).
DENSO plans to start production at the new plant in April 2009. By fiscal 2015, DENSO expects investment in the new operation to total approximately US$200 million (approximately 24 billion yen), with projected sales of approximately US$850 million (approximately 100 billion yen).
"In the pursuit of environmental conservation, as well as the safety, comfort, and convenience of drivers and passengers, automotive electronic control systems are expected to become more sophisticated and complex, resulting in an increasing demand for automotive semiconductor products," said Hiromi Tokuda, senior managing director in charge of DENSO's Powertrain Control Systems and Electronic Systems Business Groups. "To meet such increasing demand and establish a competitive production system in Japan, we have decided to set up a new company in Hokkaido where there are many talented people."
DENSO also plans to add an application design function at DENSO ELECTRONICS CORPORATION to strengthen product development capabilities.
The new company will be DENSO's third production base in Japan to produce automotive semiconductor products, including the Kota Plant and the Takatana Plant in Aichi. DENSO will produce automotive semiconductor products at these three production bases for auto manufacturers and its group companies worldwide.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Worldwide, the company employs approximately 112,000 people in 32 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2007 totaled US$30.6 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges in Japan. For more information, go to http://www.globaldenso.com, or visit our media website at http://www.densomediacenter.com.
In the Americas, DENSO employs more than 15,000 people at 39 companies with consolidated sales of US$6.5 billion for the above fiscal year. Southfield, Mich.-based DENSO International America, Inc. serves as DENSO's North American headquarters. For more information, go to http://www.densocorp-na.com.
New Company Profile
1. Name: DENSO ELECTRONICS CORPORATION
2. Planned Date of Establishment: April 27, 2007
3. Location: 1007-195, Izumisawa, Chitose, Hokkaido (Chitose Airport
Industrial Complex)
4. Capital: US$17 million (2 billion yen)
5. Ownership: 100 percent owned by DENSO Corporation
6. Investment: Approximately US$200 million
(approximately 24 billion yen projected by fiscal 2015)
7. President: Masakazu Sugimoto (current general manager of Kota Plant)
8. Business Description: Production of automotive semiconductor products
9. Employees: Approximately 100 (projected for fiscal 2009)
Approximately 1,300 (projected for fiscal 2015)
10. Sales: Approximately US$850 million
(approximately 100 billion yen projected for fiscal 2015)
11. Site Area: 163,000 square meters
12. Building Area: Approximately 50,000 square meters
*Exchange rates used are 118 yen per one dollar, at the end of March 2007 for convenience only. Billion is used in the American sense of one thousand million.