Parts maker Denso Corp. of Japan will more than double in size at its Guelph, Ont., operations by 2010 with an investment of $73.3-million, the company announced Wednesday.
Denso Manufacturing Canada Inc. will create 300 new jobs and increase total employment to 590 at the plant with a move to expand its product range.
The plant will begin producing radiators, condensers and electric fans and integrate those components into engine cooling modules. It will continue producing air conditioning units.
“With increasing demand and sales expansion in North America for engine cooling products, we decided to enhance our production capability in Canada,” said Hikaru Sugi, managing officer in charge of the company's thermal systems business group.
Sales in Canada should increase to $280-million by the 2010 fiscal year from $153-million in 2006.
Production of the new components is scheduled to begin in January, 2009.
“This expansion will allow our plant to expand its current capabilities and better service our Canadian automotive customers,” said Joseph Stitch, president of Denso Manufacturing Canada.
The Denso upgrade comes amid a major expansion by one of its key customers, Toyota Motor Corp. , of that auto maker's Canadian operations.
Toyota is building a new assembly plant in Woodstock, Ont., that will assemble 150,000 RAV4 sport utility vehicles. Production at the Woodstock plant is scheduled to begin next year.
© The Globe and Mail
