DENSO Corporation has formed a 50/50 joint venture with Kingtec Technologies (Heyuan) Co Ltd, a Chinese-based company that develops, designs, manufactures, and sells truck refrigeration in China and other parts of the world.
This 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 US $4.8 million, 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 technologies and 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 temperature control of food products shipped to consumers after production. Because of this, the refrigerator market, including those for vehicles, is expected to continue to grow.
For more information, go to www.globaldenso.com or www.densocorp-na.com.