DENSO Forms 50/50 Joint Venture with Chinese Refrigerator Manufacturer
―Strengthening DENSO’s refrigerator development and sales in the Chinese market―
KARIYA (Japan) ― DENSO Corporation has formed a 50/50 joint venture with Kingtec Technologies (Heyuan) Co., Ltd. (Kingtec), a Chinese company that develops, designs, manufacturers, and sells truck refrigeration in China and other parts of the world.
The joint venture company, named Guangdong KINGTEC DENSO Refrigeration Equipment Co., Ltd, will mainly provide products used in transportation vehicles, including trucks and trailers. It will also explore the possibility of providing products for storage and other services needed for transportation.
The new company is capitalized at 30 million yuan or approximately $4.8 million USD*, half of which will financed by DENSO (CHINA) Investment Co., Ltd., DENSO’s regional headquarters in China. Production will being in May 2016.
The purpose of the joint venture is to combine Kingtec’s diversified product line and cost competitiveness with DENSO’s outstanding technologies and unparalleled quality. This will enable DENSO to strengthen its refrigerator development and sales and contribute to improving food safety and reliability in China, as well as acquire the foothold it needs to expand its cold chain business worldwide.
In China, with increasing consumer awareness and concerns about food safety, a better cold chain is required to ensure the temperature control of food products being shipped to consumers after production. Because of this, the refrigerator market, including those for vehicles, is expected to continue to grow.