JAPAN: Denso expands Kitakyushu parts unit

By just-auto.com editorial team | 20 July 2007

Denso Manufacturing Kitakyushu in Fukuoka prefecture, Japan, will expand its 40,000 sq m (430,500 sq ft) facility by approximately 22,000 sq m (237,000 sq ft) at a cost of around 20bn yen (approximately US$162m) by fiscal 2010 to boost component output.

The Denso Corporation subsidiary will begin producing fuel pump modules and windshield wiper links, and increase output of current products including air conditioning units, injector components for diesel common rail fuel injection systems, and engine cooling modules.

The company also will start manufacturing resin housings for air conditioning units, components currently purchased externally.

"We decided to enhance our production capabilities in Kitakyushu, responding to growing vehicle production in the Northern Kyushu area," said Nobuaki Katoh, senior managing director in charge of Denso's thermal system business group.

Construction for the expansion is scheduled to begin in August and be completed in March 2008. Production start is scheduled for May 2008.

Sales for Denso Kitakyushu are expected to increase from JPY19.4bn (about $US157m) in fiscal 2006 to approximately JPY48bn (approximately $389m) in fiscal 2010. The number of employees is expected to increase from the current approximately 610 to approximately 1,400 by fiscal 2010.