Auto parts manufacturer Denso Indonesia, a subsidiary of Japan's Denso, has started construction of its third plant in Indonesia with an investment of $110m.
The new plant called PT. Denso Indonesia Fajar Plant will occupy 20ha of land in the Bekasi Fajar Estate in the MM2100 industrial park while the other two factories are located in North Jakarta and Bekasi.
Scheduled to start operations in February 2014, the new plant is expected to increase the company's production to meet the increasing demands in the local markets.
Denso senior executive director of Thermal Systems Business Group Akio Shikamura said, "By expanding production capacity, DENSO will increase its production ratio in the country, better serve its customers, and contribute to the Indonesian economy in terms of investment and employment."
The new plant will manufacture air conditioners, engine electronic control units (ECUs) and variable cam timing (VCT) control systems, as well as starters, alternators, and other devices.
Established in 1975, Denso Indonesia produces radiators, spark plugs, filters, alternators, starters and other parts for major local vehicle makers like Toyota Indonesia, Astra Daihatsu Motor, Honda Prospect Motor, Nissan Motor Indonesia and Astra Otoparts.
The company also serves as supplier for overseas markets like Japan, the US and European countries.
