Denso Corporation announced this week that will establish a new company in Vigo, Spain that will produce products related to car air conditioners and radiators in April 2006.
The new company, Denso Sistemas Termicos Espana, will be established this month with an initial capital investment of approximately $20 million.
By March 31, 2010, Denso expects to employ 300 people with projected sales of approximately $120 million at the new company. Denso’s total investment in the new operation will be $25 million
Denso plans to begin construction of an approximately 11,000-square-metre facility in May, within a site of 37,000 square metres.
The new company, Denso’s ninth European production company related to car air conditioners and radiators, will supply its products to the PSA Peugeot-CitroÃ«n Group and other companies producing automobiles in Spain.
‘In Europe, the installation rate for automotive air conditioning systems has been growing and will continue to grow,’ said Satoshi Watanabe, Denso managing director in charge of Thermal Systems. ‘In 2002, 11 million air conditioning units were installed, and we anticipate that number to climb to 15 million units by 2005.
‘Our goal in Europe is to strengthen our manufacturing base by going where our customers are located, and this new company will enable us to do that. In addition, it will help us to further promote our thermal systems business to our European customers.’