KARIYA, Japan -- DENSO has established a wholly owned company, DENSO (Changzhou) Fuel Injection System Co., Ltd., to produce common rail systems for diesel vehicles in Changzhou, Jiangsu, China. The investment will total approximately $32 million.

Construction for the new company is scheduled to begin in October with completion in August 2008. Production start is scheduled for July 2009. By fiscal 2012, the company's sales are expected to be approximately $148 million.

"We believe that the demand for common rail systems will grow as China moves towards stricter exhaust emission regulations," said Hiromi Tokuda, senior managing director in charge of DENSO's Powertrain Control Systems and Electronic Systems Business Groups. "DENSO will locally produce and provide common rail systems, particularly for high demand large diesel vehicles, and help create an environmentally conscious automotive society in China."

DENSO currently produces common rail systems in Japan, Hungary, and Thailand. The new company in China will be DENSO's third production base outside Japan for common rail systems.

For more information about DENSO, go to: http://www.densocorp-na.com.