DENSO Fuels Tennessee's Auto Future with $69M Advanced Logistics Hub

LEBANON, TN – January 15, 2026 – Global mobility supplier DENSO is deepening its roots in the Volunteer State with a landmark $69 million investment to construct a state-of-the-art advanced logistics center in Lebanon, Tennessee. The project not only secures 100 local jobs but also signals a major strategic move to fortify the company's North American supply chain with cutting-edge automation and robotics.

The new 280,000-square-foot facility is set to break ground in the summer of 2026 and become operational by spring 2027. It will replace DENSO's current, smaller operation in Wilson County, marking a significant upgrade in both scale and technological capability. This investment reinforces Tennessee's standing as a critical hub in the continental automotive industry and highlights a growing trend toward localized, high-tech logistics solutions.

Bolstering a Regional Automotive Powerhouse

This investment is more than just a new building; it's a powerful affirmation of the partnership between DENSO and the state of Tennessee. Supported by the Tennessee Valley Authority (TVA) and the Joint Economic & Community Development Board of Wilson County (JECDB), the project exemplifies the collaborative spirit that has helped transform the region into an automotive manufacturing juggernaut.

Tennessee's automotive sector is a cornerstone of its economy, hosting major assembly plants for Nissan, General Motors, Volkswagen, and Ford's forthcoming BlueOval City. This has attracted an ecosystem of over 900 suppliers, with DENSO being a foundational member since establishing its first Tennessee plant in Maryville in 1988. The state now leads the Southeast in automotive employment, and DENSO's continued investment plays a vital role in that success.

Wilson County Mayor Randall Hutto celebrated the announcement, emphasizing the long-term commitment it represents. "Today's announcement that DENSO is making a long-term $69 million investment in our community is great news for Wilson County," Hutto said. "We work hard to recruit and retain world-class employers in Wilson County, and when a company like DENSO, which has never laid off a full-time associate in their over 35-year history in Tennessee, commits to not only retain but elevate already high-quality jobs, it shows that we're succeeding."

The project is a strategic win for the entire region. Heidi Smith, senior vice president of Economic Development at TVA, noted the shared commitment to economic growth. "We are proud to celebrate this announcement today and look forward to DENSO's continued success in the region," she stated. The new center will enhance the efficiency of the regional supply network, ensuring that parts and components move seamlessly from suppliers to the assembly lines of major automakers across North America.

Engineering the Supply Chain of Tomorrow

At the heart of the $69 million investment is a push toward a more resilient, intelligent, and flexible supply chain. The Lebanon facility is designed as an 'advanced logistics center,' a term that reflects a fundamental shift in how goods are stored, handled, and distributed. This move is part of DENSO’s broader strategy to standardize and strengthen its manufacturing and distribution networks to meet the complex demands of the modern mobility industry.

The center will integrate the latest robotics and automation technologies. While specific systems were not detailed, industry trends point toward the use of Autonomous Mobile Robots (AMRs) for transporting goods, AI-powered systems for optimizing inventory, and robotic arms for sorting and packing. These technologies enable 24/7 operation, drastically reduce errors, and provide real-time data that allows for predictive analysis and smarter decision-making. In an industry grappling with global bottlenecks and a rapid transition to electric and software-defined vehicles, such capabilities are no longer a luxury but a competitive necessity.

Tomoyuki "Tom" Arakawa, CEO of DENSO in North America, framed the project as a strategic imperative. "Through this new, cutting-edge facility, we'll not only improve how we deliver to customers but also create new opportunities for our team to work with the latest robotics and automation technologies," he said. "It's a win-win that sets up our customers and team for future success."

This sentiment was echoed by Marty Deschenes, North America chief manufacturing officer at DENSO, who emphasized the project's transformative nature. "The transformation of our Wilson County operation is about more than a new building," Deschenes added. "It's about empowering our team members, improving our speed and flexibility and, ultimately, advancing DENSO into a new era of operational excellence."

A Future Focused on People and Progress

While the headlines focus on robotics and automation, a core element of DENSO's plan is its investment in people. The company has made a firm commitment to retain its entire 100-person workforce from the current Wilson County facility. All team members will be given the opportunity to transition to the new, modern center in a phased approach, ensuring job security and operational continuity.

This move directly addresses the common concern that automation leads to job loss. Instead, DENSO is positioning the transition as an opportunity for workforce upskilling. Employees will be trained to operate, collaborate with, and maintain the advanced automated systems, shifting their roles from manual labor to higher-skilled technical positions. This model of human-robot collaboration is increasingly seen as the future of work in advanced manufacturing and logistics.

The new facility is also being designed with the employee experience at its core. It will feature a fully climate-controlled environment, advanced safety and security systems, and enhanced amenities like dedicated locker rooms and expanded break areas. These features reflect a commitment to creating a safe, comfortable, and modern workplace that can attract and retain top talent in a competitive labor market.

DENSO's long-standing reputation as a stable employer in Tennessee, underscored by Mayor Hutto's comments, is a key part of its identity. This investment in both technology and its people reinforces that legacy. By building a facility that is not only technologically advanced but also human-centric, the company is laying the groundwork for sustainable growth and ensuring its workforce is equipped for the next chapter of the automotive industry. This dual focus on technological progress and employee well-being positions the new Lebanon center as a model for the future of industrial operations in the region and beyond.