DENSO sets up auto air conditioning operation in Japan

DENSO Corporation recently announced it will establish an automotive air conditioning production company in Tamura-shi, Fukushima Prefecture, Japan.

The new company — DENSO East Japan Corporation — is expected to be operational in early 2010, and will have an initial capital investment of 2.6 billion yen (approximately U.S. $25 million), according to the company.

The company projects thatby fiscal year 2015, sales will be approximately 30 billion yen (U.S. $286 million).

“To meet increasing vehicle production by Japanese car manufacturers in the Tohoku and Kanto regions, as well as to establish a competitive production system in Japan, we have decided to set up a new company in Fukushima, Tohoku region,” says Sojiro Tsuchiya, senior managing director responsible for DENSO’s Production Promotion Center. “We also aim to strengthen our competitiveness with the help of the many talented people in the region.”