Hiroshima based automotive parts maker, Ondo Corporation and Kobe Steel’s trading subsidiary, Shinsho Corporation held groundbreaking ceremony for differential gear making plant in Nantong of China on Thursday. The construction will finish for first phase in January 2013 starting operation in August. The plant supplies the gear for local users to meet increasing demand for local procurement from Chinese plants of Japanese automakers.Ondo Corporation and Shinsho Corporation established joint venture with US$ 30 million of capital in Nantong in February 2012. Ondo Corporation controls 80% of the joint venture with 20% share by Shinsho Corporation. They expect the joint venture expands the output capacity in years to secure capacity as headquarters plant of Ondo Corporation. Ondo Corporation was established in 1947. The firm’s sales were 36.266 billion yen in fiscal year ended in May 2011. The firm supplies automobile parts including differential gear, transmission and bolt for major automakers and heavy industry makers.
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