June 27, 2007 -- DENSO Corporation opened a new wholly-owned production base, DENSO (Changzhou) Fuel Injection System Co., Ltd., in Changzhou High-tech Zone, Jiangsu. The total amount invested is 444.4 million yuan (US $58.4 million). The company's main product will be fuel injection systems to be used in diesel trains. Work on the new factory will begin in October this year to be completed in August 2008. The plant is expected be operational in July 2009.

"We believe that the demand for common rail systems will grow as China moves towards stricter exhaust emission regulations," Hiromi Tokuda, senior managing director in charge of DENSO's Powertrain Control Systems and Electronic Systems Business Groups, said in a statement. "DENSO will locally produce and provide common rail systems, particularly for high demand large diesel vehicles, and help create an environmentally-conscious automotive society in China."

"The main reason we decided on this location is the proximity to our customers," DENSO spokesperson Miwa Kurokawa told Emerging China. "We believe that the demand for common rail systems will grow as China moves towards stricter exhaust emission regulations," Miwa said. "The new company plans to supply products to engine manufacturers and large vehicle manufacturers."

"We have uniform policies for all enterprises in our high-tech zone and welcome DENSO," said Wang Zhong Liang, officer in charge of foreign investment at Changzhou High-tech Zone, told Emerging China. "There are many automobile parts manufacturers in Changzhou High-tech Zone. Changzhou High-tech Zone features the perfect infrastructure, including water, electricity, heating, sewage disposal and telecommunications, with a convenient logistic network, including road, railway and water carriage."

"The project of DENSO has gone according to plan. They have obtained a business license. It is expected to go into commission in July 2009," Wang continued. "The advanced products of DENSO (Changzhou) will help to reduce emissions and noise levels. China is focusing on energy saving and environmental protection more and more."

"With the establishing of DENSO (Changzhou), we will have more local choices for purchasing parts. We are glad that DENSO settled down in Changzhou. It can offer products, which feature advanced technology, environmental protection and fuel saving. These products will be very competitive." Cheng Ming told Emerging China, an employee of Changchai Group, a manufacturer of diesel engines that is a potential customer of the new plant.

DENSO is one of the Fortune Global 500, a list of the world's largest companies in terms of revenue. With more than 112,000 employees in 32 countries and regions, DENSO is active in all aspects of the automotive business, working in cooperation with regional car manufacturers to meet regional requirements.

Changzhou High-tech Zone has been open for 14 years and it is now the home of 7,636 domestic and overseas companies, 18 of which are on Fortune Global 500 list.