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| Monday, 17 January 2022, 14:34 HKT/SGT | |
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Source: Denso | |
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| - Helping create the future of mobility - |
KARIYA, JAPAN, Jan 17, 2022 - (JCN Newswire) - Leading mobility supplier DENSO, and powertrain supplier Aisan today announced their respective Board of Directors have agreed upon and signed an agreement to transfer DENSO's fuel pump module* business to Aisan. In addition, the Board agreed to allow Aisan to acquire DENSO's equity stake in KYOSAN DENSO MANUFACTURING KENTUCKY, LLC (KDMK), located in Mt. Sterling, KY. The transfer is estimated to be on August 1, 2022.
The two companies previously announced that they reached a basic agreement on May 20, 2019, to begin studying the possibility of strengthening their competitiveness in powertrain and future growth areas. As a result of the study, the companies agreed that DENSO will transfer its entire business of developing, producing, and selling fuel pump modules to Aisan, and Aisan will acquire DENSO's equity stake in KDMK. Additionally, the companies determined that DENSO will not increase its ownership stake in Aisan.
Mutually Beneficial Agreement:
The mutually beneficial agreement will allow DENSO to focus on its Two Great Causes: Green and Peace of Mind, under which it will work to achieve carbon neutrality, zero traffic accidents and safe and seamless society. While, Aisan will work to improve its product capabilities by combining both Aisan and DENSO's technology and knowhow, as well as maximizing resources to improve production efficiency and achieve low-cost manufacturing.
The two companies will continue to collaborate and utilize each other's strengths and contribute to the realization of a sustainable mobility society.
This business transfer is subject to approval from the antitrust authorities in the relevant countries and regions.
* Fuel pump module
An assembly that delivers fuel from the fuel tank to the engine
Overview of business transfer:
Business to be transferred - Fuel pump module
Agreement date - January 17, 2022
Date of the transfer - August 1, 2022 (planned)
About DENSO
DENSO is a $44.6 billion global mobility supplier that develops advanced technology and components for nearly every vehicle make and model on the road today. With manufacturing at its core, DENSO invests in its 200 facilities to produce thermal, powertrain, mobility, electrification, & electronic systems, to create jobs that directly change how the world moves. The company's 168,000+ employees are paving the way to a mobility future that improves lives, eliminates traffic accidents, and preserves the environment. Globally headquartered in Kariya, Japan, DENSO spent 10.0 percent of its global consolidated sales on research and development in the fiscal year ending March 31, 2021. For more information about global DENSO, visit https://www.denso.com/global.
Topic: Press release summary
Source: Denso
Sectors: Automotive
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