Japanese automotive supplier Denso has planned to invest 2 billion yuan (US$290.3 million) for a new plant in Nansha District of Guangzhou, official media southcn.com reported.
The new plant will cover an area of about 100,000 square meters, and will be mainly used for auto parts manufacturing workshops, quality monitoring center and a warehousing and distribution center to produce auto components, the report said, citing an agreement signed between the management committee of the Guangzhou Nansha economic and technological development zone and Denso (Guang Zhou Nansha).
The facility will focus on designing new products for the development of new energy vehicles and intelligent network vehicles, it said. It is expected to be put into production in 2021 and achieve mass production in 2022.
Despite the recent decline in China’s vehicle market, China was still a very large and important market in the medium and long term, said Yoshitaka Kajita, president of Denso (China) Investment Co. Ltd.
Denso’s China subsidiary, Denso (Guang Zhou Nansha), was established in 2004 in the Nansha District of Guangzhou, and has been mainly engaged in the production and management of engine control systems, filters, horns, chassis control systems and equipment.