February 26, 2008 -- Major auto parts maker Denso Corp. is considering building a plant in the Tohoku region of northeastern Japan, informed sources said Tuesday.

Details have yet to be decided, but Miyagi Prefecture is believed to be the most likely location.

The new plant is expected to be a key supply base for auto assembly plants that Toyota Motor Corp. and Honda Motor Co. plan to start operating in eastern Japan in 2010.

Central Motor Co., a Toyota assembly unit of Sagamihara, Kanagawa Prefecture, southwest of Tokyo, plans to move to the village of Ohira in Miyagi Prefecture, northeastern Japan.

Honda is building a new assembly plant in Yorii, Saitama Prefecture, north of Tokyo.

At present, Denso's operations are concentrated in the central Japan prefecture of Aichi, the home of Toyota, the company's top shareholder.

Denso is believed to have chosen the Tohoku region due to the proximity of the new Toyota and Honda plants and the relative ease of hiring new employees.

The Toyota group uses special freight trains to transport auto parts from Aichi Prefecture to the Iwate plant of Kanto Auto Works Ltd. in northeastern Japan.

Denso may consider sending products made at the new plant to Aichi Prefecture on the return journeys.

Source: Jiji Press English News Service