DENSO to Invest Nearly $1 Billion in North America Over Next Four Years --Localization of Product and New Business Results in Significant Investment and Jobs--
SOUTHFIELD, Mich., Jan. 15, 2013 /PRNewswire/ -- Global automotive supplier DENSO is investing 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.
"Last year, we announced that DENSO will drastically localize product in the regions in which we operate," said Terry Helgesen, senior vice president of Industry Relations at DENSO International America, Inc. "Not only are we making products in North America, but we're also localizing critical tooling."
Growth in the United States
In the U.S., DENSO is looking at investing more than $750 million in Michigan, Tennessee, Iowa, California and North Carolina. The investment represents an increase in research and development, an expansion in existing production lines, the creation of new production lines, and the opening a new assembly and warehouse facility to support its Heavy Duty customers.
Not only does the investment represent a localization of technology, but DENSO's also investing in making more of its own manufacturing equipment and dies here. The company has dedicated a building at DENSO Manufacturing Tennessee in Maryville, Tenn., where proprietary machinery will be made. This will serve as the regional headquarters for manufacturing machinery and dies. However, DENSO will make machinery in other regional locations as well.
In the future, DENSO plans to make all of its critical manufacturing equipment in North America. The company has sourced several millions of dollars of business to American machine shops, which will positively impact the community and create additional jobs.
DENSO will continue to invest in North America and regions around the world.
Currently, in North America, DENSO employs more than 14,000 people at 28 consolidated companies and affiliates. Of these, 26 are manufacturing facilities located in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 10,000 people in California, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, and Arkansas.
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, electric, 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 35 countries and regions (including Japan) and employs more than 120,000 people. Consolidated global sales for the fiscal year ending March 31, 2012, totaled US$38.4 billion. Last fiscal year, DENSO spent 9.5 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges.
In North America, DENSO employs more than 14,000 people with consolidated sales totaling US$6.2 billion for the fiscal year ending March 31, 2012.
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SOURCE DENSO Corporation