DENSO and Hanshin Electric Establish Joint Venture in China to Produce Ignition Coils

TOKYO, March 16 -- DENSO Corporation, parent company of Southfield, Mich.-based DENSO International America, Inc., today announced that it has established, as of March 7, a joint venture with Hanshin Electric Co., Ltd. as an initial base for producing automobile ignition coils in China.

The new joint venture -- Wuxi DENSO Hanshin Automotive Products, Co., Ltd. -- will be located in the city of Wuxi, Jiangsu province, China. The new company, with an initial capital investment of approximately US$20.6 million (2.1 billion yen), will begin commercial production in January 2007. Wuxi DENSO Hanshin Automotive Products is DENSO's 14th and Hanshin Electric's first production base in China.

"Because of the growing demand for electronically controlled engines for automobiles and increased production by automotive manufacturers in China, DENSO and Hanshin Electric decided to jointly produce ignition coils in China," said Hiromi Tokuda, managing officer of DENSO's Powertrain Control Systems Business Group. "This allows us to improve product lineup and differentiation to meet customer needs. We'll supply these products to auto manufacturers conducting business in China."

Wuxi DENSO Hansin Automotive Products, DENSO's 14th and Hanshin Electric's first production base in China, will produce two types of ignition coils: a stick coil with a cylindrical magnetic circuit, and a plug-top coil, which has a square magnetic circuit. The stick coil, a "world's first" introduced by DENSO in 1997, has a magnetic circuit that fits into the plug-hole of an engine, increasing the available engine space. The plug-top coil has a magnetic circuit on its upper cover, means it can produce more power and allows greater flexibility in plug-hole size.

DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world's major carmakers. Worldwide, the company employs 95,000 people in 31 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2004 totaled US$24.2 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges. For more information, go to http://www.globaldenso.com/ .

In the Americas, DENSO employs 14,000 people at 33 companies with consolidated sales for the above fiscal year totaling US$5.3 billion. DENSO International America, Inc. in Southfield is the North American headquarters.

  Company Profile
  1. Name: Wuxi DENSO Hanshin Automotive Products Co., Ltd.
  2. Established: March 7, 2005
  3. Location: Wuxi National Hi-tech Industrial Development Zone, Wuxi,
               China (about 20 kilometers southeast of the center of Wuxi)
  4. Capital: US$13 million
  5. Ownership: 75 percent ownership by DENSO (China) Investment Co., Ltd.**
                25 percent ownership by Hanshin Electric Co., Ltd.
  6. Total Investment: US$20.6 million* (2.1 billion yen)
  7. President: Yutaka Ogoshi (currently senior project manager of Engine
                Control Components Manufacturing Department, DENSO
                Corporation)
  8. Business Fields: Manufacture of ignition coils for automobiles
  9. Employees: 500 (projected for fiscal 2010)
  10. Sales: US$49.6 million* (5 billion yen) (projected for fiscal 2010)
  11. Site area: 40,000 square meters
  12. Total floor area: 7,200 square meters

  *Exchange rates used are 102 yen per one dollar, at the end of January
   2005.
  **100 percent DENSO-owned regional headquarters for China

  Profiles of the Investing Companies

  Hanshin Electric Co., Ltd.
  1. Established: December 1939
  2. Location: Kobe City, Hyogo, Japan
  3. Capital: Approximately US$2 million* (213 million yen)
  4. Main Shareholders: 34.5 percent ownership by Hitachi Ltd.
  5. Main Business Fields: Manufacture and sale of ignition coils for
                           automobiles, electronic devices for automobiles,
                           and other household equipment
  6. Employees: 370 (May 2004)

  *Exchange rates used are 102 yen per one dollar, at the end of January
  2005.

  DENSO (China) Investment Co., Ltd.
  1. Established: February 2003
  2. Location: Chaoyang District, Beijing, China
  3. Capital: Approximately US$120.98 million
  4. Main Shareholders: 100 percent ownership by DENSO Corporation
  5. Main Business Fields: Regional headquarters for China business, along
                           with sales for automotive components manufactured
                           by companies in China
  6. Employees: 120 (December 2004)