just-auto.com

USA: Fuel systems maker expands in Kentucky

By just-auto.com editorial team | 3 September 2004

Kyosan Denso Manufacturing Kentucky plans to expand its Mt. Sterling manufacturing facility from 44,000 square feet to more than 79,000 square feet. The expansion will accommodate additional automotive fuel pump module assembly lines and the automotive components supplier expects to more than double the number of employees from the present 150 people.

The announcement comes little more than a year after the company moved its manufacturing operations from Winchester, Kentucky to Mt. Sterling, expecting at that time to employ up to 230 people by 2008. Construction of the expanded facility started last month with completion scheduled for March 2005. Total investment for the expansion will be $US2.1 million.

"We estimate that our sales will increase from US$40 million in 2004 to US$150 million by 2008 due to this expansion," said company president Katsumi Urano.

KDMK assembles automotive fuel systems, on-board refuelling vapour recovery valves, and fuel pump modules for North American car manufacturers.

Production starts for two additional component parts for the fuel pump modules - suction filters in April 2005 and pressure regulators in April 2006 - had been planned prior to the latest announcement.

The operation is a joint venture between Kyosan Denki America and Denso International America. Kyosan Denki owns 70% of the limited liability partnership and Denso 30%.