DENSO - CASE STUDY DENSO’S Choice for Its Strategic Investment
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INVESTMENT OPPORTUNITIES DENSO - CASE STUDY DENSO’s Choice for its Strategic Investment DENSO Corporation (DENSO) is a leading global supplier of advanced automotive technologies, systems and components, and its headquarters is located in Kariya, Aichi, Japan. Its presence in Europe dates from the opening of an office in Amsterdam in 1973. It has since established sales offices in the United Kingdom, Germany, France, Italy, Sweden and Belgium. The first European production company was DENSO Barcelona S.A. established in Spain in 1989. This company manufactures engine-control components and automotive electronic products. Today DENSO has 16 production companies and 16 companies involved in sales and other activities in Europe. Among these DENSO has four plants manufacturing car air-conditioning units in Great Britain, Germany, Italy and the Czech Republic. DENSO - Giving Drive to the Czech Automotive Sector One of the largest Japanese investments in the Czech automotive industry has been made by Products manufactured at DENSO CZECH DENSO Corporation in the Liberec industrial zone. DENSO, one of the world’s leading automotive suppliers, has decided to locate its car air-conditioner manufacturing plant in Product Units/ year Liberec, bringing to this region the most modern technology and several hundred new jobs. The HVAC (Heaters, Ventilators and Air Conditioners) 1,400,000+ planned total investment amount should reach CZK 3 billion (approximately USD 130 mil.) and Heater cores 1,400,000+ about 1,700 jobs should be created. The DENSO plant was the 25th Japanese manufacturing Evaporators 2,800,000+ project in the Czech Republic. Condensers 1,400,000+ DL pulleys 1,000,000+ DENSO MANUFACTURING CZECH (DENSO CZECH) came into existence on July 12th 2001. Radiators 216,000 The mass production of air-conditioning units, evaporators, condensers and radiators for the automotive industry started after one year of very focused preparation and construction work that began in February 2002. The company’s products are being delivered to DENSO CZECH’s main customers: VW, Audi, BMW, TPCA and Magyar Suzuki. The foreseen turnover for 2005 should reach CZK 6 billion (approximately USD 260 mil.). Its current president is Mr. Fumiaki “Due to the rapidly increasing demand for air- Nagata. conditioning equipment in Europe, we have decided to build a new plant and thus In 2002, DENSO was followed by DENSO’s key supplier of aluminum tubes. DENSO’s operations strengthen our market position,” in the Czech Republic are becoming the core manufacturing location of DENSO in Europe, Koichi Fukaya, President and CEO, DENSO Corporation strongly oriented towards new technologies and product development. Japanese Projects in the Czech Republic There are now 160 Japanese companies registered in the Czech Republic, including 88 trading companies, 65 manufacturers, three R&D companies and four others. Another 60 potential Japanese projects are currently in the negotiation stage. Japanese investors altogether have committed to invest a total of USD 2.6 billion and will create over 32,000 direct new jobs and all companies are planning further expansion and reinvestment in the future. Investment incentives have been granted to 44 Japanese investors, while another 9 are in the application process. More than 150 enquiries from Japanese companies have been received and negotiated by CzechInvest. (Feb. 2006) Major Japanese Investors 66 28 29 9 1 Toyoda Gosei 2 Oiles 3 Kyocera 4 Koito 5 Aisan Industry 6 Takada 10 30 61 67 7 Fujikoki Corp. 8 Nachi Fujikoshi 9 Asahi Glass 10 Tris 11 Aoyama 2 8 11 31 1 12 62 Seisakusho 12 Tokai Rika 13 Mitsubishi Electric 14 Koyo Seiko 7 3 5 6 13 15 Showa Denko 16 Furukawa Electric 17 Toyo Radiator 4 14 32 15 26 18 Amagasaki Pipe Corp. 19 Matsushita El. Works 20 Yazaki 33 35 65 16 17 Corporation 21 Daikin Industries 22 Daiho Industrial 23 Matsushita 18 27 37 19 34 36 57 Electric 24 Matsushita Electric 25 Muramoto Industry 26 Asahi Beer 64 20 25 69 27 Olympus Optical 28 Shimizu Ind. 29 Denso Corp. 30 Denso Airs 24 44 23 38 56 58 2122 59 31 Komatsu 32 Sumitumo Corp. 33 Mitsui 34 Toyota Motors / PSA 42 43 35 Kayaba Industry & Mitsubishi Corp. 36 Toyoda Koki 37 Matsushita 55 45 Communication 38 Asmo 39 Aisin Seiki 40 Toyoda Machine Works 41 63 54 53 41 Zexel Valeo Climate Control 42 Sumitomo Light Metal 39 68 46 52 43 Futaba Ind. 44 Kyocera Corp. 45 Alps Electric 46 Tatsuno Corp. 47 51 48 47 Daikin Ind. 48 Ohmori 49 Daido Metal 50 Nichias Corp. 51 Okuma 49 52 Nippon kayaku 53 Olympus 54 Toray industries 55 Onamba 40 56 Komatsu 57 Siemens-Matsushita 58 Nichirin 59 Shimano 50 60 Nachi Fujikoshi 61 OPTREX Corp. 62 Takata 63 NPK 64 Fujikura 60 65 EPE International Corp. 66 Dinippon Ink and Chemicals Inc. 67 Ishimitsu Industry 68 JST Trading 69 JCC Engineering Source: CzechInvest, 2006 This material is distributed free of charge. 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