Denso Corporation, a Japanese automotive components manufacturer, has committed to building a new factory in Nansha district in Guangzhou, Guangdong province.

On May 24, Denso's subsidiary, Denso (Guangzhou Nansha), signed a cooperation agreement with Nansha district, unveiling the company's plan to invest 2 billion yuan ($290 million) in two stages to the new factory to boost the company's business in the new-energy vehicle industry. The project will begin construction on June 28.

Denso (Guangzhou Nansha) manufactures automobile vehicle engine control systems, horns, chassis control systems, and other equipment and molds for vehicles. The company was founded in 2004 and is based in Nansha district of Guangzhou.

According to the agreement, the new factory will cover a combined construction area of 100,000 square meters. It will include auto parts production plants, quality testing centers, warehousing and logistics centers, parking lots, and supporting administrative office areas. Its main products will be electronic components for vehicles such as automotive on-board computers. The factory is expected to become operational in 2021 and mass production will be achieved in 2022.

"The industry chain is very important for manufacturing companies. Nansha boasts car manufacturing companies, so plans to introduce models and new technologies can be quickly carried out, according to Kajita Yoshitaka, president of Denso (China) Investment.

The Guangdong-Hong Kong-Macao Greater Bay Area will further expand Denso's relationships and the business opportunities for Denso's partners will increase greatly, Kajita said. "It will also create a favorable environment for local auto companies to gather and boost Nansha's auto industry development," he added.

Cai Chaolin, Party secretary of Nansha district, said that in the first quarter of this year, Nansha's GDP growth rate reached 11.9 percent, leading all districts in Guangzhou. In recent years, the automobile industry has grown into a pillar industry in Nansha. Denso (Guangzhou Nansha) is an important member of Nansha's automobile industry and the Nansha district government will fully support Denso's new factory in south China.

Nansha and Denso (Guangzhou Nansha) sign a cooperation agreement on May 24. [Photo/southcn.com]