Sanden Automotive Components (Sanden AC) has reinforced its world-class production structure and purchasing system by co-investing with the new automotive air-conditioning compressor manufacturer in China in April this year. Such development of structure and purchasing system has continually been strengthened by placing a focus on Japan as its major hub to include a new division of management resources.
The new factory of Sanden AC in China was moved from its previous joint-venture factory "Hua Zhan San Electric Vehicle Air Conditioner" to Pudong, Shanghai, with the site area of 12,000 square meters. Its production plan is expected to reach 15 million units a year.
Although the company’s current investment amount has not been disclosed, it is clear that the investment will respond to the higher demand for the automotive industry in China.
With regard to the purchasing system, Sanden AC set up a division to be responsible for developing an effective purchasing system to meet international standards and will work full-scale in October. In addition, it will turn the Yattajima Plant (Isezaki City, Gunma Prefecture) into the main center in Japan which will manage the company’s procurement. The plant will also become the base for the world-class research and development (R&D), which had previously been conducted only in Japan.

The SANDEN Group has decided to have withdrawn itself from the home air-conditioning system business by the first quarter of 2019 and instead will invest in the automotive industry as it is more profitable while continuing to support Sanden AC in terms of human resources and machine facilities.

President Tsuguo Itoh said about this matter, "Since we have various international talents, we want to manage them most effectively, promote diversity, and provide them with a better human resources support."