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JAPAN: Three suppliers to follow Nissan to China - reports

By just-auto.com editorial team | 6 August 2003

BRG Townsend Automotive NewsWire, citing Japan's Nihon Keizai Shimbun newspaper, said that three major suppliers of auto parts to Nissan have announced expansion plans that involve the establishment of new facilities in China.

According to the report, Yorozu Corp. will invest about $US25 million to build a plant that will manufacture drive train components in a plant will most likely to be in the area of Guangzhou which will be built with a Chinese joint venture partner as is customary there.

The Automotive NewsWire report said another Japanese firm, Unipres Corp., has also announced plans to establish a wholly owned subsidiary in China to manufacture pressed steel parts - Unipres recently established a plant to support Nissan in Forest, Tennessee and its China plant will also be located in Guangzhou.

Finally, BRG Townsend's report said, Ichikoh Industries Ltd., which manufactures lighting systems, is establishing a facility in China to produce headlights for Nissan, though the company did not say where the plant would be located. Ichikoh's largest shareholder is Valeo and the two are reported to be negotiating possible joint production in China.