Denso Corporation, an affiliate of Toyota Motor, said yesterday that
the company had established a joint venture with Abdul Latif Jameel
Co., a major distributor of Japanese vehicles in the Kingdom, to
produce car air-conditioners in Jeddah.
the major Japanese manufacturer of car electronic and electrical parts
which has the top share of the global car air-conditioner market, said
in Tokyo that the total investment is expected to be about $2.5
million. The two companies will each hold a 50 percent stake in the
The new joint
venture, Denso Abdul Latif Jameel Co. Ltd., represents Densoís first
key production site in the Middle East.
The new production
company is expected to contribute significantly to closer ties between
Japan and Saudi Arabia, which promotes industrial investment as a
national project, Denso said in a statement.
company said it chose Abdul Latif Jameel as its partner in Saudi
Arabia because the company is the largest enterprise in the country
outside the petroleum industry and Denso has supplied automotive
components to it.
The new company is
scheduled to begin production in October. It plans to produce about
20,000 car air-conditioners annually for Abdul Latif Jameel, which is
the sole distributor for Toyota and Lexus in Saudi Arabia.