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Denso to start manufacturing diesel common rail systems in Thailand and Hungary

18 April 2002

Japan’s Denso Corporation said it will start manufacturing components applicable up to 1,800-bar diesel common rail systems in its new company in Thailand named Siam Denso Manufacturing Co., Ltd. (SDM) in June 2002, and in Denso Manufacturing Hungary Ltd. (DMHU) in Hungary in November 2002. Denso is investing in its Thailand and Hungary operations in the anticipation of an expansion of the diesel engine market in both Asia and Europe.

The Denso diesel common rail injection system is capable of injecting fuel at 1,800 bar, which is higher than in most conventional systems. The 1,800-bar diesel common rail system has been developed for Euro 4 applications.

SDM was established on Feb. 8, 2002 with US$19 million (2.4 billion yen) capital in Samutprakarn, Thailand to manufacture components such as supply pumps, injectors and common rails for the common rail systems. SDM plans to start constructing a plant in June 2003, and complete the construction within 2004.

SDM has a two-step production plan for common rail systems. First, it will start manufacturing supply pumps in a Denso (Thailand) Co., Ltd. (DNTH) plant in June 2002. Then, in 2004, it will start manufacturing other components as well as supply pumps in its new plant. The investment will be US$54 million (7 billion yen), and production volume projected for fiscal 2005 is approximately 250,000 systems.

DMHU in Hungary will introduce manufacturing lines into its plant and start manufacturing components for the common rail systems in November 2002. The investment will be US$54 million (7 billion yen) and the production volume projected for fiscal 2005 is about 300,000 systems.

Source: Denso Corporation