(Yicai Global) May 28 -- Japanese auto parts maker Denso has penned a deal with Guangzhou in South China to invest at least CNY2 billion (USD290 million) and build a new-energy vehicle parts factory.
The first of two construction phases to build the 100,000 square meter plant will begin on June 28, local news outlet Nanfang Daily reported. The facility will include manufacturing workshops to produce on-board computers and other auto electric components, quality monitoring centers, warehouses and logistics centers, as well as parking lots and admin offices, the report added.
The plant is expected to open in 2021 before reaching mass production the following year.
Denso, which ranked 229th in the Fortune 500 2018, set up its China unit Denso Guangzhou Nansha in 2004. The city is an important automotive production and sales hub in China and several Japanese vehicle and parts makers, including Toyota, Honda, Nissan and Aisin Seiki, have set up joint ventures there. It is also home to local electric carmakers Xiaopeng Automotive Technology and GAC New Energy.
Editor: James Boynton