Denso to build new plant in Mexico image

Denso Mexico S.A. de C.V. (DNMX), on Tuesday said the company plans to build a new plant in Silao, Guanajuato, Mexico.

The plant will manufacture heating, ventilation and air conditioning — HVAC units. Denso will consider producing additional products at this site in the future.

The $57 million facility, in Silao, will employ about 400 people when it opens in October 2013, Sugi said at a press conference today at the North American International Auto Show in Detroit.

This will be the third plant for DNMX, which also has a facility in Guadalupe City, Nuevo Leon state.

Denso currently manufactures a variety of automotive products at its two existing plants, including instrument clusters, climate control panels, and system control components such as variable cam timing and oil control valves.

The announcement comes shortly after the company said will open a research and development office in the Silicon Valley of California ; and expand its operations in Southfield to house labs for battery cooling and in-dash technology engineering.

The expansion of the battery lab is funded by a $2.6 million grant from the U.S. Department of Energy, Doug Patton, senior vice president of Denso International, told Crain’s today at the North American International Auto Show. The lab will engineer different ways to cool car batteries.