Denso Corporation said it would build an additional plant at its Fukushima prefecture location in Tamura city to diversity its manufacturing lineup to include powertrain components, which, it said, "will enhance the competitiveness of the group's production system [in] Japan".

The supplier will spend about US$135m (JPY15bn) by 2023 to build the new plant and expand production. The project will start in August 2017 and will be completed in July 2018. Production will begin in October 2018 in stages. The number of employees required will increase to around 600 (from about 300 now) by 2023.

Denso Fukushima currently manufactures automotive thermal systems, including air conditioning systems and engine cooling modules (ECMs).

The new plant will manufacture fuel pumps and injectors for petrol engine fuel systems.

"This expansion aims to serve as a Denso Group production base in eastern Japan, and will improve its capability to meet customer needs and contribute to the development of the local community," the supplier added.