Japanese-based
DENSO Corporation and Abdul Latif Jameel Co., Ltd. have jointly established a
company to produce car air conditioners in Jeddah, Saudi Arabia. It represents
DENSO’s first major production investment in the Middle-East. The total investment
is expected to be about US$2.5 million. DENSO and Abdul Latif Jameel Co., Ltd.
each own 50 percent of the new company and manage it jointly. The new company
is scheduled to begin production in October. Initially, it will produce about
20,000 car air conditioners annually for Abdul Latif Jameel Co., Ltd., which is
the sole distributor for Toyota and Lexus in Saudi Arabia.

DENSO selected Abdul Latif Jameel Co., Ltd. as its partner in Saudi Arabia
because the company is the largest enterprise in the country outside the petroleum
industry and DENSO has supplied automotive components to it.

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The new production company is expected to contribute significantly to closer
ties between Japan and Saudi Arabia, which promotes industrial investment as
a national project.

To view related research reports, please follow the
links below:-

World
Automotive Aftermarket to 2002

The
Automotive Sector of the Middle East – A market for the millennium

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