Denso set to sell part of business to Niterra

Denso Corporation has concluded a memorandum of understanding on starting negotiations for the transfer of selected internal combustion engine (ICE) parts operations to Niterra Co., Ltd., formally NGK Spark Plug Co. Ltd.

The two parties reached a decision to sign the MOU during a board of directors meeting today, 10th July.

Niterra Co., Ltd. boasts some of the world’s leading technologies in its field, and by transferring operations related to these core ICE products to it, Denso said it aims to enhance the product appeal of internal combustion engines parts by combing technologies and manufacturing capabilities.

In addition, Denso said it will accelerate the development of products for electric vehicles in preparation for the full-scale of electrification, and will also work on the development of energy management systems which will become increasingly important for electric vehicles.

Through these efforts, Denso claims it will be able to offer products that are appealing to customers in terms of both performance and price in the entire automotive market, including internal combustion engines and electric vehicles.

“Based on this MOU, both parties will proceed with discussions and negotiations toward finalising the business transfer contract. The transfer will take place only after official approval has been obtained from competition law authorities in all countries and regions concerned, and after fulfilling all other requirements,” a Denso statement read.