DENSO Establishes New Company in Tianjin, China to Produce Car Navigation Systems

TOKYO, June 13 -- DENSO Corporation announced today that it has established a new company to produce car navigation systems in Tianjin, China. The new company, DENSO (Tianjin) ITS Co., Ltd., begins production in February 2006.

Established with an initial capital investment of US$700,000 (76 million yen), DENSO (Tianjin) ITS Co. will employ 20 people and produce approximately 60,000 navigation units per year when production begins. DENSO (China) Investment Co., Ltd., DENSO's wholly owned holding company in China, will provide 95 percent of the initial investment; Tianjin TEDA Group will provide the remaining five percent.

"This is DENSO's first company to produce car navigation systems in China," said Mitsuharu Kato, managing officer for DENSO Corporation's ITS Product Division. "China is one of the fastest growing markets for car navigation systems, so this company will help us meet the needs of our customers and consumers."

Demand for car navigation systems in China is expected to increase rapidly from 50,000 units in 2004 to 500,000 units by 2010.

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 104,000 people in 31 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2005 totaled US$26.2 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 more than 15,000 people at 33 companies with consolidated sales totaling US$5.4 billion for the above fiscal year.

  Company Profile
  1. Name: DENSO (TIANJIN) ITS CO., LTD.
  2. Established: June 2, 2005
  3. Location: Tianjin Economic Technological Development Area, China
     (in Tianjin DENSO Electronics Co., Ltd. about 60 kilometers south of
     the center of Tianjin)
  4. Capital: US$700,000 (76 million yen) *
  5. Ownership: 95 percent ownership by DENSO (China) Investment Co.,
     Ltd. **
     5 percent ownership by Tianjin TEDA Group ***
  6. Total Investment: US$1 million (110 million yen) *
  7. President: Masao Sakurai (Sakurai became president of the new company
     and Tianjin DENSO Electronics Co., Ltd. which he is leading.)
  8. Product Line: Car navigation systems
  9. Employees: 20 (projected for fiscal 2006)
  10. Production: approximately 60,000 units (projected for fiscal 2006)

* Exchange rates used are 109 yen per one dollar, at the end of May 2005 for convenience only. Billion is used in the American sense of one thousand million.

  ** 100 percent DENSO-owned regional headquarters for China
  *** Investment company of Tianjin Economic-Technological Development Area

  Background Information:
  Profile of Tianjin TEDA Group
  1. Established: November 1994
  2. Location: Tianjin Economic Technological Development Area, China
  3. Capital: Approximately US$230 million (25.4 billion yen)
  4. Ownership: 100 percent by Tianjin Economic Technological Development
     Area
  5. Business Fields: Investment
  6. Employees: Approximately 1,750 (December 2004)
  7. Sales: Approximately US$109 million (11.9 billion yen)* (December 2004)

  Company Profile of Tianjin DENSO Electronics Co., Ltd.
  1. Established: July 1997
  2. Location: Tianjin Economic Technological Development Area, China
  3. Capital: US$20 million (2.19 billion yen)
  4. Ownership: 93 percent by DENSO (China) Investment Co., Ltd.
     7 percent by Toyota Tsusho Corporation
  5. Business Fields: Manufacture and sale of automotive electronic control
     components
  6. Employees: Approximately 350 (December 2004)
  7. Sales: Approximately US$55 million (6 billion yen)* (December 2004)

*Exchange rates used are 109 yen per one dollar, at the end of May 2005 for convenience only. Billion is used in the American sense of one thousand million.