Denso expands operations in Mexico, plans two new plants

Denso Corporation has announced that Denso Mexico SA DE CV (DNMX) will expand its plant in Apodaca, Nuevo Leon, Mexico, to increase production of transmission components in the North American region. The expansion represents an investment of US$ 53.8 million (Rs 323 crore) which will add 8,200 square metres of space and 500 jobs by 2018. The plant will begin production in December 2015.

In addition, HamanakoDenso Co Ltd., a Denso Group Company, has set up a new facility in Salinas Victoria City, Nuevo Leon, Mexico, to produce solenoids for engine and airflow control units for its North and South American customers. The new facility, Hamaden Mexico SA DE CV (HDMX), represents an investment of US$ 35.8 million (Rs 215 crore) and will employ about 340 people when full production is underway in 2018. Construction is scheduled to begin in January 2015, with production starting up in stages from around August 2016. HDMX is the third overseas establishment of HamanakoDenso, which also has manufacturing plants in Indonesia and Vietnam.

“Mexico is an important and essential market for the automotive industry and for the Denso Group,” said Hiroaki Okuchi, executive director responsible for the system control components business unit. “By establishing new companies and expanding conventional production bases, we will strive to better meet our customers’ needs.”

Denso opened its Apodaca Plant in 1996, which manufactures instrument clusters, air-conditioning control panels, and variable cam timing (VCT) systems. In addition to the Apodaca Plant, DNMX also has plants in Guadalupe City in Nuevo León State and Silao City in Guanajuato State, manufacturing sensors, car air conditioners and radiators.

Photograph: Variable cam timing controller (hydraulic type).