Toyota Industries Corporation (TICO) and Denso have established a new company, Yantai Shougang TD Automotive Compressor (YST), in Yantai City, Shandong Province, China, to make automotive air conditioning compressors for the growing Chinese market.

The new company commenced operations in December 2013.

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YST succeeds the manufacturing for the compressor business split off from Yantai Shougang Denso and plans to produce 2m compressors in fiscal 2015.

With the further growth of the Chinese market and sales expansion, there are plans to produce 2.5m compressors in fiscal 2017 and futher plans to boost production capacity later. YST wants to increase local content to improve competitiveness.

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