Japan's Denso Corporation and GAC Corporation, a subsidiary of Denso, have agreed with Yangzhou Jiexin Auto Air-Conditioner Company to establish a joint venture to produce bus air conditioning systems in Jiangsu.
"Further development of highways and expressways across China is expected to increase demand for intercity express buses and sightseeing buses, which have a high installation ratio of air conditioning systems," said Nobuaki Katoh, senior managing director responsible for Denso's Corporate Center and Thermal Systems Business Group. "We target an annual sales of about 5 billion yen for the new company in 2010."
The Denso Group and Yangzhou Jiexin Auto Air-Conditioner will form the new company, Yangzhou Jiexin Denso Air-Conditioner Company, in March 2008, each providing 50% of the capital. In April 2008, the new company will start producing air conditioning systems for bus manufacturers in China, using the plant and equipment of Jiexin Auto Air-Conditioner. The new investment will total approximately US$2.5 million.
Denso Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components.