Tokyo - DENSO Corporation today announced that in November it spun off the sales division of P.T. DENSO Indonesia (DNIA), to form P.T. DENSO Sales Indonesia (DSIA), a new sales company.
The new company began with an initial capital investment of approximately 10 billion rupiah (US$1.1 million)(140 million yen). Sales of approximately 2.4 trillion rupiah (US$0.3 billion) (37 billion yen) are projected for fiscal year 2005.
DENSO currently has a company in Indonesia that sells commercial auto parts, P.T. DENSO Sales Indoparts Utama (DSIU). In January, DENSO will combine DSIU with the news sales company, DSIA, in order to integrate all automotive component sales activities. DSIU's 100 employees will be transferred to employment with DSIA.
With regional trade liberalization through the achievement of the ASEAN Free Trade Agreement, the ASEAN auto market is expected to grow in the 21st century.
"Previously, DENSO manufactured similar products in each individual ASEAN country," said Hiroshi Uchiyama, senior managing director in charge of the DENSO Sales Group, DENSO Corporation. "However, with the view of ASEAN as a single region, a more centralized production system that allows single manufacturing bases to complement each other has been introduced. With imports from ASEAN nations on the increase, their effective distribution in combination with DENSO's domestic products in Indonesia has become a necessity."
Uchiyama added, "We hope by integrating the sales operations within the new company we will enhance business activity in Indonesia."
This is not the first time DENSO has split an existing division. In Thailand in December 2002, DENSO carried out a similar project, spinning off the sales division from its manufacturing company and forming DENSO International (Thailand) Co., Ltd. DSIA will be DENSO's second sales-only company in the ASEAN region.
DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components. Its customers include all the world's major carmakers. Worldwide, the company employs 95,000 people in 31 countries and regions, including Japan. Consolidated global sales for the fiscal year ended March 31, 2004 totaled US$24.2 billion. DENSO common stock is traded on the Tokyo, Osaka and Nagoya stock exchanges. For more information, go to www.globaldenso.com
| Company Profile | |
|---|---|
| Name: | P.T. DENSO Sales Indonesia (DSIA) |
| Establishment: | November 5, 2004 |
| Location: | Sunter, Tanjung Priok, Jakarta (about 15 kilometers from the city center of Jakarta)(In P.T. DENSO Indonesia Sunter Office) |
| Capital: | 10 billion rupiah (US$1.1 million) (140 million yen) * |
| Ownership: | 100 percent ownership by P.T. DENSO Indonesia (DNIA) |
| President: | Yoshiro Sumino (Currently director of DNIA) |
| Business line: | Sales of automotive components in Indonesia |
| Sales: | 2.4 trillion rupiah (US$0.3 billion) (37 billion yen) * (projected for fiscal 2005) |
| Employees: | Approximately 140 (projected for 2005) |
Reference
| DNIA | |
|---|---|
| Name: | P.T. DENSO Indonesia |
| Establishment: | May 1975 |
| Location: | Sunter, Tanjung Priok, Jakarta |
| Capital: | 2.3 billion rupiah (US$0.3 million) (30 million yen) * |
| Ownership: | 58.3 percent ownership by DENSO International Asia Pte. Ltd. (DIAS) 25.7 percent ownership by P.T. Astra Otoparts 16 percent ownership by other companies |
| President: | Masahide Takahashi |
| Business line: | Manufacturing and sales of air conditioning systems, radiators, plugs, filters and othersa |
| Sales: | 1.9 trillion rupiah (US$0.2 billion) (27 billion yen) * (in fiscal 2003) |
| Employees: | Approximately 1,800 |
| DSIU | |
|---|---|
| Name: | P.T. DENSO Sales Indonesia Utama |
| Establishment: | July 2001 |
| Location: | Sunter, Tanjung Priok, Jakarta |
| Capital: | 2 billion rupiah (US$0.2 million) (30 million yen) * |
| Ownership: | 51 percent ownership by P.T. DENSO Indonesia (DNIA) 44 percent ownership by P.T. Bintraco Dharma (D) 5 percent ownership by other companies |
| President: | Bambang Wiyono |
| Business line: | Sales and repair of automotive components |
| Sales: | 135 billion rupiah (US$17.7 million) (2 billion yen) * (in fiscal 2003 |
| Employees: | Approximately 100 |
*Exchange rates used are 113 yen per one dollar and 0.014 yen per one rupiah.