Invitalia and Denso Thermal Systems have signed a Development Contract to upgrade the production site in Avellino, where over 800 employees work.
Denso Thermal Systems supplies the worlds major car manufacturers with thermal systems for engine cooling and air-conditioning for cars and commercial and industrial vehicles. The company is a subsidiary of the Japanese Denso group, world leader in the field of thermal systems for the automotive sector and a major Japanese investor in Italy.
The total investment covered by the Development Contract is 49.5 million euro, including 24.7 million provided by Invitalia through a subsidised loan and non-repayable grant.
The agreement was signed in Rome by Domenico Arcuri, CEO of Invitalia, and Marco Di Rao Marotta, Managing Director of Denso Thermal Systems SpA.
With todays agreement, said Domenico Arcuri, another foreign group is investing in the South of Italy to boost production. This confirms that our country, including the South, is becoming attractive to foreign multinationals. Also when compared to other countries, we can offer investors the most beneficial conditions. I am not just talking about the public incentives, but especially about simplifying procedures and establishing concrete timeframes, which our Agency is able to ensure through the Development Contract.
The signing of the development contract, commented Marco Di Rao Marotta, was very important for our company in the decision to allocate such large investments in Italy, which would otherwise have been made in other countries with lower manufacturing costs. The investment covered by the contract will help to maintain the level of competitiveness, both for products targeted at the Italian market and, in relation to the site to produce new evaporators, products primarily intended for export. We appreciated the way Invitalia promptly handled the contract.
Thanks to the Development Contract, at the site in the Pianodardine area in Avellino, new production lines will be created and the existing ones will be upgraded to produce latest-generation radiators, a new refrigeration evaporator and a new condenser for the engine cooling and air-conditioning systems. Towards this, 47 million euro will be invested.
Another 2.5 million will be used to implement a high-efficiency tri-generation system, adjacent to the current site, to produce electricity and heat energy entirely for the industrial facility.
Todays agreement is the 10th Development Contract signed by Invitalia, the National Agency for inward investment promotion and enterprise development. The 9 previous agreements some with major multinationals were signed in Campania, Sicily and Puglia, with investments worth around 390 million euro in the aeronautical, food, energy and telecommunications sectors.