HANOI, Nov 10 Asia Pulse - The Hamanakodenso Co Ltd, a subsidiary of the Japanese Denso Corporation, established a new company last month to produce auto parts in Hung Yen Province.
The new company, Hamaden Vietnam Co Ltd (HDVN), is scheduled to begin operations in June 2010 with 1.3 billion yen (about US$12.6 million) in capital.
The company will initially invest around 2.2 billion yen (about $21.2 million) to build a factory to produce automotive sensors and solenoid valves in Thang Long Industrial Park 2 in the northern province of Hung Yen.
Construction of the factory is expected to begin in February 2009 and to be completed by September 2009.
The factory is expected to create approximately 800 new jobs by 2012.
The factory will produce sensors for the ASEAN market, as well as solenoid valves for world-wide markets, except for Japan.
The sensors will include those used to control engine air-intake, and the solenoid valves will be used to send vaporised gasoline from the tank to the engine.
HDVN is Hamanakodenso's second overseas company. It's first is a production company in Indonesia that produces horns.
The Denso Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global supplier of advanced technology, systems and components.
Customers include major global car-makers. World-wide, the company employs around 119,000 people in 32 countries and regions, including Japan.
Consolidated global sales for the fiscal year ending March 31, 2008 totalled $40.2 billion.
Vietnam has attracted many Japanese auto parts suppliers, including Takanichi Vietnam Company, the Yazaki FDS Vietnam Ltd Company and the Harada Vietnam Ltd Company.