TOYOTA Industries Corporation (TICO) and DENSO Corporation will establish a joint venture with Toyota Tsusho Corporation (TTC) and Toyota Industry (Kunshan) Co., Ltd to produce car air conditioning compressors in Kunshan, China.
The new company - TD Automotive Compressor Kunshan, Co., Ltd - will begin producing variable displacement compressors in April 2006. The initial investment will be approximately US$9.5 million (1 billion yen).
In April 2006, DENSO and TICO will also start production of variable displacement compressors at Yantai Shougang DENSO Co., Ltd (YSD) in China.
YSD was established in 1994 with TTC and Shougang Corporation to produce fixed displacement compressors.
"We are responding to increasing environmental awareness by manufacturing competitive energy-efficient variable displacement compressors through both production bases," said Masafumi Kato, managing director in charge of TICO's Compressor Division.
Compared to the fixed displacement compressor, which has a constant refrigerant displacement, the variable displacement compressor can alter refrigerant displacement to control air conditioner cooling capability, making it highly fuel-efficient.
"By forming a new company and expanding the capacity of the existing production base, we will be able to respond to a larger demand for compressors and expand our business in the Chinese market," said Satoshi Watanabe, senior managing director in charge of DENSO's Thermal Systems Group.
With core-business materials handling equipment and car air-conditioning compressors occupying top world market share, Toyota Industries Corporation is a total equipment maker that is expanding its ventures in vehicles, engines, textile machinery and electronics. Fiscal 2003 sales were 1.16 trillion yen.