Denso Corporation is to establish a new car air conditioner factory in Tamura-shi, Fukushima Prefecture, next month.
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The new company – Denso East Japan Corporation – will have an initial capital investment of JPY2.6bn (about $US25m) and start production in January 2010.
Denso expects investment in the new company to total JPY16bn ($153m) by fiscal year 2015, and projects sales of approximately JPY30bn ($286m) by then.
“To meet increasing vehicle production by Japanese car manufacturers in the Tohoku and Kanto regions, as well as to establish a competitive production system in Japan, we have decided to set up [the new company] in Fukushima, Tohoku region,” said Denso executive Sojiro Tsuchiya.
The site ”is geographically most balanced” to supply components to the Toyota group’s member companies in the Tohoku region and other automakers in the northern Kanto region, Denso president Shinro Iwatsuki told Kyodo News.
The news agency noted that Toyota subsidiary Central Motor would build a new automobile assembly plant in neighboring Miyagi Prefecture and plans to start operations in 2010.
