Denso Corporation has established a new company to produce heat exchangers for car air conditioners and radiators in Tianjin, China.
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The new company — Denso (Tianjin) Thermal Products Co., Ltd. — will begin production in July 2006. The initial capital investment will be approximately US$66.7 million (6.8 billion yen).
“Denso established this new company in response to a growing demand for car air conditioners and radiators resulting from increased production by automotive manufacturers in China,” said Satoshi Watanabe, senior managing director in charge of the supplier’s Thermal Systems Group.
The plant will supply heat exchangers primarily to existing car air conditioner production companies in China. Currently, these production companies’ main customers are Japanese automotive manufacturers in China, but Denso will continue expanding its business, so it can supply European and American automotive manufacturers in China as well.
Denso has been growing its car air conditioner business in China since 1994, when it opened its first production company in the north. It now has four production companies in the country.
