Denso has announced it will begin to produce fuel injectors and fuel injection pumps for gasoline engines at the end of 2005 in its new company -- DENSO (GUANGZHOU NANSHA) Co., LTD. - established July 21, 2004 in Guangzhou, China with an initial capital investment of US$16.7 million (1.8 billion yen). Denso's investment in the new operation will total approximately US$22.2 million (2.4 billion yen).

"Initially, the new company will supply its products mostly to Guangzhou Toyota Motor Co., Ltd. and other Japan-based automotive manufacturers throughout China. And we hope to address broader business needs, including increasing product lines for corporate development," said Hiromi Tokuda, managing officer in charge of Denso's Powertrain Control System Group.

Tokuda added, "The new automobile policy announced by the Chinese government this June requires that automotive manufacturers expend more effort on environmental concerns and fuel efficiency in order to contribute to a clean and comfortable motorized society. Because engine-related products must meet the same standards, Denso will begin manufacturing fuel injectors for gasoline vehicles in China."

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