Denso Corporation and electronics and ceramics company Ibiden have formed a capital and business alliance to jointly develop ‘the next-generation vehicle exhaust system’. This collaboration will combine Ibiden’s advantages in high-performance ceramic materials with Denso’s advantages in developing products as systems to ‘synergistically develop high-performance yet simple and low-cost vehicle exhaust systems’.

Denso will acquire the treasury stock of Ibiden through a third-party allocation. In addition, to respond to an increasingly diverse range of powertrains, Denso and Ibiden will consider collaboration in the area of vehicle electrification to make vehicle electrification more efficient.

As international regulations on vehicle exhaust emissions become more strict, internal combustion engines must be more efficient and the exhaust systems improved. This capital and business alliance will enable the two companies to pool their accumulated technological strengths to speed up the development of high-performance vehicle exhaust systems for internal combustion engines, including gasoline, diesel, hybrid, and plug-in hybrid engines.

Denso has developed and provided systems components to better control the intake, power, and exhaust events in the operating cycle of gasoline and diesel engines. Meanwhile, Ibiden has focused on its ceramic business and developed high-performance ceramic materials, such as for diesel particulate filters (DPF), for the exhaust system of diesel engines.

The two companies will develop eco-friendly products that improve fuel efficiency and reduce exhaust emissions, thus helping to preserve the global environment.