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Denso to build new plant in China's Guangdong province

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Denso to build new plant in China's Guangdong province

Japanese auto-parts maker Denso Corp. will spend at least ¥2 billion on a new manufacturing facility in China's Guangdong province, Xinhua News Agency reported May 27, citing sources with the district.

The proposed plant will consist of auto parts manufacturing workshops, a quality monitoring center, and warehousing and distribution center for auto electronic components, the report said, citing an agreement signed between the company and the management committee of the Guangzhou Nansha economic and technological development zone. It is expected to span 100,000 square meters in the Nansha district of Guangzhou.

Construction of the planned site is scheduled to start June 28 and the facility is expected to be operational in 2021, with mass production scheduled in 2022, Xinhua reported.

Yoshitaka Kajita, president of Denso (China) Investment Co. Ltd., reportedly said that Denso remains optimistic about China despite the recent decline in the country's vehicle market. Kajita believes the country is still a very large and important market in the medium and long term, which is why Denso decided to invest more in the Nansha district to meet market and customer needs, the news agency said.

The management committee of the Guangzhou Nansha economic and technological development zone and Denso's local unit, Denso (Guangzhou Nansha) Co. Ltd., reportedly signed the agreement for the new facility.

Denso established Denso Guang Zhou in 2004 in the Nansha district. Since then, the unit has engaged in the production and management of engine control systems, filters, horns, chassis control systems and equipment, and molds, Xinhua said.

As of May 27, US$1 was equivalent to ¥109.54.