China Business Information Network reported that Denso Corporation will set up a new headquarters in China to merge its operations in the country and boost sales on rising demand.
Denso (China) Investment Co Ltd will oversee the operations of six companies in China run by Denso by the end of March 2004. The new company is capitalised at $US30 million.
“We hope by consolidating and strengthening all sales functions within one company, it will create a framework for sales expansion,” Hiroshi Uchiyama, senior managing director for Denso, said in a statement. “In addition, Denso plans to integrate administrative functions… and logistical affairs to establish a more efficient business operation over the next three years,” he said. Located in Beijing, the firm opened at the end of February and is forecast to employ 90 staff by 2005.
China is expected to produce more than 6.5 million vehicles in 2010, making it one of the biggest car manufacturers in the world along with the US and Japan, Uchiyama said. “Our customers are already expanding their businesses in this fast-growing market. Denso recognises the urgent need to enhance our sales and supply systems in China,” he added, according to the China Business Information Network report.