DENSO Corporation plans to establish a new company in Tamura-shi, Fukushima Prefecture, Japan in April to manufacture car air-conditioning systems. DENSO East Japan Corporation will have an initial capital investment of 2.6 billion yen (approximately $25 million). The start of operations is scheduled for January 2010. DENSO expects investment in the new company to total 16 billion yen (approximately $153 million) by fiscal year 2015, and projects sales of approximately 30 billion yen (approximately $286 million) in fiscal year 2015.
"To meet increasing vehicle production by Japanese car manufacturers in the Tohoku and Kanto regions, as well as to establish a competitive production system in Japan, we have decided to set up a new company in Fukushima, Tohoku region," said Sojiro Tsuchiya, senior managing director responsible for DENSO's Production Promotion Center.