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DENSO Invests Approximately $51.4 Million To Expand Silao Mexico Plant

The investment allows DENSO to add a new production line to manufacture alternators for its North American customers as they are ramping up production in the region.

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SOUTHFIELD, Mich., – Global automotive supplier DENSO is investing approximately US$51.4 million to expand its operations and add about 450 new jobs at its DENSO Mexico S.A. de C.V. (DNMX) manufacturing facility in Silao, Guanajuato, Mexico. The investment allows DENSO to add a new production line to manufacture alternators for its North American customers as they are ramping up production in the region. The new line is scheduled to start production in October 2014.
 
This expansion news follows DENSO’s January 2012 announcement to build the Silao facility, which will begin producing heating, ventilation and air conditioning (HVAC) units in October 2013. DENSO’s initial investment totaled US$57.0 million, which represented a 25,600-square-meter facility and more than 400 jobs. Since the announcement, DENSO has increased its production line up of radiators, condensers and washer systems and, as a result, decided to expand 30,600 square meters further to accommodate the alternator line and other future business expansions. The total investment now represents US$108.4 million, 56,200 square meter facility and about 850 jobs.
 
The Silao plant is the third plant for DNMX, which also has two facilities in Nuevo Leon state. DNMX currently manufactures a variety of automotive products at its two existing plants, including instrument clusters, climate control panels, and engine system control components such as variable cam timing and oil control valves.
 
North American Investment
Earlier this year, at the North American International Auto Show in Detroit, DENSO announced it would invest nearly $1 billion in North America over the next four years, which will result in more than 2,000 jobs across the region. The investment will allow DENSO to better support its North American customers, as well as expand new business areas and localize products, many of which will help automakers meet upcoming fuel requirements. More than $750 million will be invested in the United States alone, along with more than 1,200 jobs.
 
Currently, in North America, DENSO employs more than 17,000 people at 32 consolidated companies and affiliates. Of these, 22 are manufacturing companies with 29 locations in the U.S., Canada and Mexico. In the U.S. alone, DENSO employs more than 11,000 people in California, Michigan, North Carolina, South Carolina, Tennessee, Kentucky, Georgia, Iowa, Ohio, and Arkansas. DENSO’s North American consolidated sales totaling US$6.8 billion for the fiscal year ending March 31, 2013.

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