SOUTHFIELD, Mich., — Global automotive supplier DENSO is investing approximately US$51.4 million to expand its operations and add about 450 new jobs at its DENSO Mexico S.A. de C.V. (DNMX) manufacturing facility in Silao, Guanajuato, Mexico. The investment allows DENSO to add a new production line to manufacture alternators for its North American customers as they are ramping up production in the region. The new line is scheduled to start production in October 2014.
This expansion news follows DENSO’s January 2012 announcement to build the Silao facility, which will begin producing heating, ventilation and air conditioning (HVAC) units in October 2013. DENSO’s initial investment totaled US$57.0 million, which represented a 25,600 square meter facility and more than 400 jobs. Since the announcement, DENSO has increased its production line up of radiators and washer systems and, as a result, decided to expand 30,600 square meters further to accommodate the alternator line and other future business expansions. The total investment now represents US$108.4 million, 56,200 square meter facility and about 850 jobs.
The Silao plant is the third plant for DNMX, which also has two facilities in Nuevo Leon state. DNMX currently manufactures a variety of automotive products at its two existing plants, including instrument clusters, climate control panels, and engine system control components such as variable cam timing and oil control valves.
North American Investment:
Earlier this year, at the North American International Auto Show in Detroit, DENSO announced it would invest nearly $1 billion in North America over the next four years, which will result in more than 2,000 jobs across the region. The investment will allow DENSO to better support its North American customers, as well as expand new business areas and localize products, many of which will help automakers meet upcoming fuel requirements. More than $750 million will be invested in the United States alone, along with more than 1,200 jobs.
Currently, in North America, DENSO employs more than 17,000 people at 32 consolidated companies and affiliates. Of these, 22 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 11,000 people in California, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, and Arkansas. DENSO’s North American consolidated sales totaling US$6.8 billion for the fiscal year ending March 31, 2013.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electronics and information and safety. Its customers include all the world's major carmakers. Worldwide, the company has more than 200 subsidiaries and affiliates in 36 countries and regions (including Japan) and employs more than 130,000 people. Consolidated global sales for the fiscal year ending March 31, 2013, totaled US$38.1 billion. Last fiscal year, DENSO spent 9.4 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges.
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DENSO Mexico S.A. DE C.V.
Established: September 1994
95 percent owned by DENSO International America, Inc.,
5 percent owned by Sumitomo Corporation
President: Tomoyuki Arakawa
Employees: 4,660 as of June 2013
Main customers: Toyota, Ford, GM, Honda and Chrysler
1) Apodaca City, Nuevo Leon, Mexico
2) Guadalupe City, Nuevo Leon, Mexico
3) Silao City, Guanajuato, Mexico
Silao Site area
Land: 266,000 square meters
Building: 25,600 square meters
Addition: 30,600 square meters
Total Building: 56,200 square meters
Initial Investment: US$57.0 million
Additional Investment: US$51.4 million
Total investment: US$108.4 million
Employees: 850 (projected for 2015)