June 18, 2007 -- Denso intends to establish a new wholly owned company, Denso Fuel Injection System, in Changzhou, Jiangsu Province, China to produce common rail systems for diesel vehicles. This will be Denso's third production base outside Japan for common rail systems; the other two are located in Hungary and Thailand. The company plans to invest approximately ¥4bn (US$32.4m) in the new unit. Construction is expected to commence in October 2007, while production should begin by July 2009. Sales are expected to reach about ¥18bn by fiscal 2012, the company said, adding that it plans to employ around 450 people at the new site by then.

As the country becomes more environmentally conscious and implements stricter exhaust emission standards, demand for common rail systems is expected to grow significantly, said senior managing director of Denso's Powertrain Control Systems and Electronic Systems Business Groups, Hiromi Tokuda. "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," Tokuda added.

Source: Automotive World
Source: Factiva