KARIYA, Japan ― DENSO East Japan Corp., a wholly-owned subsidiary of DENSO Corp., will later this year begin construction of its manufacturing plant for the production of car air conditioning systems and other products. The company is targeting a May 2011 operation launch date.

“The production of automakers in eastern Japan is expected to gradually increase, so later this year we have decided to begin the construction of DENSO East Japan’s manufacturing plant,” said Yuji Morimoto, president of DENSO East Japan. “With the future of the surrounding business environment still unclear, we will continue to evaluate the situation and consider the company’s medium-term business plans.”

Although established in April 2008, DENSO East Japan postponed the construction of its plant and the launch of operations due to the uncertainty in automobile production and the rapid economic slowdown since Fall 2008.

DENSO will invest approximately $54 million in the facility. The company is projecting annual sales of approximately $65 million for the fiscal year ending March 2012.