KARIYA (Japan) ― DENSO Corporation today announced that CHONGQING DENSO CO., LTD. (hereafter referred as CQD), DENSO’s motorcycle component production and sales base in China, and Kunshan Gongcheng Electric Equipment Co., Ltd., a motorcycle component manufacturing company in China, have integrated their businesses to form a new company in June. The new joint venture company, GONGCHENG DENSO (CHONGQING) CO., LTD, (hereafter referred as GCDN), have started production at two plants.
“China has the world’s largest gasoline-powered motorcycle market, and we look to increase our competitiveness in that market through this integration with Kunshan Gongcheng,” said Masahiko Miyaki, senior executive director of DENSO's Powertrain Control Systems business group.
The former CQD will serve as GCDN’s headquarters and manufacturing plant in Chongqing, and the former Kunshan Gongcheng as the branch manufacturing plant in Kunshan. GCDN will continue to manufacture ignition systems for carburetor-equipped engines and add production of ignition systems for electrically controlled fuel-injected engines, which are expected to grow in the market as emission control regulations are tightened.
Profile of joint venture
1. Name: GONGCHENG DENSO (CHONGQING) CO., LTD.
2. Location: No. 55 Baihe Road, Nanping, Chongqing Economic & Technological Development Zone, China
3. Chairman/President: Chairman: Michio Adachi; President: Fu Liang
4. Establishment: March 2012
5. Capital: 2.85 billion yen (approximately US$35.9 million*)
6. Ownership: 51% owned by the DENSO Group and 49% by the Kunshan Gongcheng Group
7. Employees: 690 (as of June 2012)
8. Business description: Production and sales of motorcycle components for carburetor-equipped engines and electrically controlled fuel injected engines
Profile of Kunshan Gongcheng Electric Equipment Co., Ltd.
1. Location: No. 518, Cang Ye Road, Shunyan Industrial Zone, Huaqiao, Kunshan, Jiangsu, China (approx. 50 km from Shanghai)
2. Chairman/President: Chairman and President: Fu Liang
3. Establishment: August 2007
4. Capital: 10 million yuan (approx. US$1.6 million)
5. Ownership: 100% owned by Fu Liang and other individual shareholders
6. Employees: 385 (as of June 2012)
7. Business description: Production and sales of motorcycle components for carburetor-equipped engines
*Exchange rate used is 79.31 yen to the US$1, and 6.32 yuan to the US$1 at the end of June 2012 for convenience only.
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 over 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. For more information, go to www.globaldenso.com, or visit our media website at www.densomediacenter.com.