Denso Corp., Japan's largest car component maker, said Wednesday it will set up a wholly owned subsidiary in the Czech Republic around August to produce car air conditioners.
The new firm, Denso Manufacturing Czech s.r.o., is expected to start production in 2003. It will be Denso's fourth production unit in Europe, after those in Britain and Germany.
Denso, an affiliate of Toyota Motor Corp., plans to expand its production capacity in Europe, where it expects growing demand for car air conditioners.
The new Czech subsidiary will be capitalized at 400 million yen, the company said.