DENSO Corporation has announced that it has concluded a memorandum of understanding on starting negotiations for the transfer of selected internal combustion engine parts operations to Niterra Co., Ltd, the company behind the NGK and NTK brands. 

Reflecting the need for the industry to move towards electrification, while at the same time further develop internal combustion engine efficiency, DENSO is proposing the transfer of business operations for its Spark Plug and Exhaust Gas Sensor products to Niterra. 

Niterra boasts some of the world’s leading technologies in its field, and by transferring operations related to these core internal-combustion-engine products to them, DENSO aims to enhance the product appeal of internal combustion engines parts by combing technologies and manufacturing capabilities. In addition, DENSO 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 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, and contribute to the early realization of a carbon-neutral society.

Based on the memorandum of understanding, 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.