Showa Denko to Expand Automotive Heat Exchanger Production in China

Grand Ocean-Showa Auto Air Conditioning (Dalian) in China plans to double the output capacity of automotive heat exchanger to yearly 700,000 units and operate fully in 2007, which is a joint venture between Showa Denko of Japan and Chinese makers engaged into businesses related to car air conditioner, to manufacture automotive heat exchanger such as evaporator and aluminium capacitor. The JV, called GOSA, expects to expand its net sales to 4.5 billion yen in 2008 from 1 billion yen in 2006 to meet increasing demand for automotive heat exchanger in China.The capital of GOSA is US$ 8 million, 40% of which is held by Grand Ocean Manufacturing of Hong Kong, 35% by Showa Denko and 25% by Dalian Refrigeration of China. Walujo Santoso, president of GOSA, said to Japan Metal Bulletin that Chinese automobile market would keep the firm growth in future even under severe competition among auto related product makers and that GOSA would meet increasing demand for automotive heat exchanger from Volkswagen, the main customer of GOSA in China. GOSA plans about 800 million yen of investment to increase the employment and improve productive layout for products assembly.Showa Denko holds 5 production bases of automotive heat exchanger worldwide, which locate in China, U.S.A., Thailand, Czech Republic and Japan. The total output capacity is 9 million units of capacitor per year, while the current production is at the level of 5 million units. Showa Denko aims to strengthen the automotive heat exchanger business more as one of growing business fields related to automobiles.