2008
Mexican Joint Concern Made 100% Subsidiary
June 17, 2008
On April 30, Sanden Corporation moved to expand its automotive equipment business by acquiring 100% of the shares of the joint venture company Sanden Mexicana S.A. de C.V. (hereafter referred to as SMX),
thus making it into a wholly owned subsidiary of the corporation.
SMX originally had a 51% stake from our business partner Industrial Ross, and a 49% stake from Sanden International U.S.A. Inc. (hereafter referred to as SIA) and Sanden Corporation.
It was established in Saltillo City of Mexico and began operation as a compressor assembly plant in 1984.
Making full use of press technology possessed by Industrial Ross, the plant changed its operations from compressor assembly to the supply of clutch parts for compressors and automotive parts,
expanding its sales to reach a turnover of US$16 million as of April 2008, having grown to 225 employees.
Key business areas include clutch parts and automobile power train parts, with 75% of its business going to SIA and 25% to major automotive parts manufacturers.
Recently Mexico has set up free trade zones in the southern regional economic block (South America) and in Southeast Asian countries and is making efforts towards economic development.
Holding a base of operations in this area and injecting rational, advanced production technology will not only reduce costs but will be highly significant in the competition to win new markets and customers.
The former head of SIA’s Production Engineering Division, Tatsuro Hirose, will become the president of SMX upon its becoming a wholly owned subsidiary,
and Sanden Corporation’s unique “STQM” management philosophy will be immediately put into place to raise management quality in the company.
Management Structure reforms and Production Engineering reforms will make the corporation into one able to contribute to both the Sanden Group and to regional economic development.
