Nansha builds new factory with investment of $300m

The Administrative Committee of Guangzhou Nansha Economic and Technological Development Zone and Denso (Guangzhou Nansha) Co formally signed the Investment Cooperation Agreement on the South China New Plant Project of Denso (Guangzhou Nansha) Co Ltd on May 24.

Denso will initially invest no less than 2 billion yuan ($300 million) in two phases, and build a new plant in South China with a land area of approximately 100,000 square meters in Huangge town for new energy vehicle related industries. The project will start on June 28.

Cai Chaolin, member of the Standing Committee of the CPC Guangzhou Municipal Committee and Party secretary of the CPC Nansha District Committee, welcomed Denso's further increasing its capital in Nansha.

"Denso has been in Nansha for many years and has ushered in long-term development. It has also witnessed and participated in the vigorous development of Nansha's automobile industry," Cai said.

Cai pointed out that the district has entered the fast lane of rapid economic development. In the first quarter of this year, its GDP growth rate was 11.9 percent, leading the city; the number of new enterprises increased by 76 percent over the same period. Many new auto companies are also gathering in Nansha.

Last year, the overall output value of automobile manufacturing and related industries led by GAC Toyota exceeded 100 billion yuan.

Denso is a supplier of world-leading automotive parts and systems. As early as July 21, 2004, Denso was established, which is a wholly-owned subsidiary of Denso Electronics Co Ltd in China.

The company is mainly engaged in the production and operation of automotive engine control systems, filters, horns, chassis control systems, equipment and molds.

After the completion of the project, the total construction area will be about 100,000 sq m on a land area of 150 mu(100,000 sqm).

Kajita Yoshitake, chairman of Denso Management Co and chairman of Denso (China) Investment Co said that after the project is put into production, the new plant will further expand its production capacity for the original products. On the other hand, it will focus on designing new products for the development of new energy vehicles and intelligent network vehicles.

Xie Ming, deputy director of the Administrative Committee of Nansha Development Zone said that Nansha will rely on a good automobile industry chain and investment environment to attract more upstream and downstream enterprises.

"Nansha will issue policies to support the manufacturing industry to complete industrial procurement locally and help localization of key component companies," he noted.