KARIYA, Japan — DENSO Corp. has announced plans to establish a new company in Chitose, Hokkaido, Japan, to produce automotive semiconductor products. The new company, called DENSO Electronics Corp., will have an initial capital investment of approximately $17 million.

DENSO plans to start production at the new plant in April 2009. By fiscal 2015, DENSO expects investment in the new operation to total approximately $200 million, with projected sales of approximately $850 million.

"In the pursuit of environmental conservation, as well as the safety, comfort and convenience of drivers and passengers, automotive electronic control systems are expected to become more sophisticated and complex, resulting in an increasing demand for automotive semiconductor products," said Hiromi Tokuda, senior managing director in charge of DENSO’s Powertrain Control Systems and Electronic Systems Business Groups. "To meet such increasing demand and establish a competitive production system in Japan, we have decided to set up a new company in Hokkaido where there are many talented people."

DENSO also plans to add an application design function at DENSO Electronics Corp. to strengthen product development capabilities.

The new company will be DENSO’s third production base in Japan to produce automotive semiconductor products, including the Kota Plant and the Takatana Plant in Aichi. DENSO will produce automotive semiconductor products at these three production bases for auto manufacturers and its group companies worldwide.

For more information about DENSO, go to: http://www.globaldenso.com.