Denso is expanding its US footprint with a $1bn spend at its Maryville, Tennessee location.
"The investment is part of Denso's commitment to advancing automotive innovation in North America and will significantly increase the role North America plays in the global trend toward vehicle safety and electrification," the supplier said in a statement.
It has been developing its roadmap for future mobility for the past three years, including determining the best location to establish its North American manufacturing hub. It will create more than 1,000 jobs in Maryville, Tennessee to make it a primary manufacturing centre in North America for electrification and safety systems.
Globally, Denso is a leading developer of electrification systems for environmentally friendly automobiles, sophisticated functions involved in vehicle safety and security, and new services that connect vehicles and society. These systems will play a crucial role in meeting increasing electric vehicle demand.
"This is an investment in the future of Denso, and also the future of transportation. We are seeing dramatic shifts in the role of transportation in society, and this investment will help position us to meet those changing demands," said Kenichiro Ito, chief executive officer of Denso International America.
"Since setting roots here, Denso has played a major role in helping Tennessee transform into an automotive production leader," said Jack Helmboldt, president of Denso Manufacturing Tennessee. "This investment enables us to provide new opportunities for top talent to advance the next generation of vehicles."
The $1bn spend will create about 1,000 new production and support jobs, including technicians and engineers. The investment will also expand multiple production lines to produce advanced safety, connectivity, and electrification products for hybrid and electric vehicles. These new products, Denso claimed, will radically improve fuel efficiency and preserve electric power by recovering and recycling energy, and by connecting all systems and products inside the vehicles. The products will create the highest efficiency for a whole vehicle by anticipating the road environment via collaboration with information outside the car and using data to enhance performance of electrified products.
Denso announced a $400m spend in Maryville in 2015, adding 500 jobs and consolidating various warehouse operations into one central location. The company broke ground on the facility in July 2016.
The company recently spent $75.5m at its Southfield, Michigan headquarters and Dublin, Ohio facilities.