Automotive systems supplier Denso is opening a parts distribution centre (PDC) in Nashville Tennessee as part of its plans to expand product development and manufacturing capabilities across the region.
The Nashville facility – Denso Logistics Nashville Tennessee (DLNT) – represents an investment of $6.7m and covers an area of 15,300 sq.m.
Overall the company is investing almost $1 billion in North America, with more than $750m in the US. It will bring the number of warehouses Denso has in North America to six.
"This new warehouse enables us to expand our capabilities to satisfy our customers and also support continued sales growth," said Britt Autry, vice president of the North American Production Promotion Center at Denso Manufacturing Tennessee in Maryville.
The latest development in Tennessee follows closely on Denso’s recent $1.6m investment to expand operations at its logistics facility in Belleville, Michigan.
The expansion at the Denso Logistics Michigan (DLMI) warehouse added almost 3,800 sq.m
DLMI began operations in 2007 and coordinates the distribution of inbound parts from various countries, including Japan, Spain, Hungary and Thailand, for a wide range of Denso's North American customers.
Denso reported that in North America it increased sales to $4.1 billion thanks to vehicle production growth, a 10.8% increase from the previous year. As a result of the increase in production volume and the company’s cost reduction efforts operating income rose to $123.2m, an increase of almost 45% from the previous year.