Aisin Seiki has set up a wholly owned subsidiary in Brazil to oversee the operation of its local factory.
The Kyodo news agency said that the company will invest JPY3.3bn in the subsidiary, Aisin Automobile Ltda., which is located in Sao Paulo state.
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The establishment of the subsidiary is also aimed addressing growing moves by Toyota and other major Japanese carmakers to relocate production overseas to counteract the strong yen, Aisin Seiki said.
The factory will start production of such parts as door frames and seats in the latter half of fiscal 2012.
The company supplies to a wide range of OEM customers, but historically Toyota Group has been its major customer.
