Global automotive supplier Denso Corporation plans to expand Kyosan Denso Manufacturing Kentucky, its subsidiary in Mt. Sterling, Kentucky, by 84,500 square feet from the current 80,700 square feet.
This will cost US$27.1m and will create approximately 150 new jobs by 2010. Due to the expansion, capital was increased US$16m last month.
“With this expansion, we will be able to increase our production of automotive fuel pump modules and their components, including fuel filters and flanges,” said Kyosan Denso president Shunichiro Hiromasa. “We aim to increase sales to US$160m by fiscal year 2010, from US$74m in fiscal year 2005.”
Construction of the new facility is scheduled to begin in August and be completed by March 2007. Production is scheduled to start in June 2007.
Kyosan assembles automotive fuel system components, fuel pump modules and on-board refuelling vapour recovery valves for North American car manufacturers.
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By GlobalDataIt’s a joint venture between Kyosan Denki America (70%) and Denso International America (30%).
Kyosan Denki America in turn is a subsidiary of Kyosan Denki, headquartered in Ibaraki prefecture, Japan, which produces components for fuel supply systems, fuel filtration systems and fuel control systems for the automotive industry and employs 1,515 people worldwide. Consolidated net sales for the fiscal year ended 31 March, 2006 totalled US$341m.