Denso to establish joint venture in eastern China to produce bus air condition systems

Shanghai. February 26 (Gasgoo.com) - DENSO Corporation and GAC Corporation, a subsidiary of DENSO, have formed a joint venture with Yangzhou Jiexin Auto Air-Conditioner Co., Ltd. located China’s eastern province of Jiangsu to produce bus air conditioning systems, local media reported yesterday.

 

The DENSO Group and Yangzhou Jiexin Auto Air-Conditioner will form the new company, Yangzhou Jiexin DENSO Air-Conditioner Co., Ltd. (tentative name), in March 2008, each providing 50 percent of the capital. In April 2008, the new company will start producing air conditioning systems for bus manufacturers in China, using the plant and equipment of Jiexin Auto Air-Conditioner. The new investment will total approximately US$2.5 million, according to Japan Corporate News.

"Further development of highways and expressways across China is expected to increase demand for intercity express buses and sightseeing buses, which have a high installation ratio of air conditioning systems," said Nobuaki Katoh, senior managing director responsible for DENSO's Corporate Center and Thermal Systems Business Group. "We target annual sales of about 5 billion yen for the new company in 2010."

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.

 

Company Profile of Joint Venture

Name:                    Yangzhou Jiexin DENSO Air-Conditioner Co., Ltd.  (tentative name)

Establishment:     End of March, 2008 (scheduled)

Location:                Jiangsu Industrial Zone, Yangzhou, Jiangsu, China

Capital:           US$1.8 million

Ownership:    50 percent owned by Yangzhou Jiexin Auto Air-Conditioner Co., Ltd.

Investment:    Approximately US$2.5 million

President:     Takanobu Asai (current Chief Engineer of the Climate, Cooling and Heating Product Division)

Business:      Production and sales of bus air conditioning systems