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Press Room
Toyota Tsusho Corporation and First Baking Co., Ltd. Strengthens Commercial and Capital Agreement
2009-12-22
This is to notify that First Baking Co., Ltd. (hereinafter referred to as "First Baking"; Head Office: Kodaira-shi, Tokyo; President and CEO: Masahide Hosokai) and Toyota Tsusho Corporation (hereinafter referred to as "Toyota Tsusho"; Head Office: Nagoya City, Aichi Prefecture; President: Junzo Shimizu) has agreed to expand its existing cooperative business relationship. As a result of the agreement, Toyota Tsusho will increase its shareholding of First Baking from 3.9% to 33.4%.
Background Regarding Commercial and Capital Agreement
First Baking is a manufacturer and distributor of various breads, Japanese confectionaries, Western confectionaries, and cookies, among other bakery-related products. Under the corporate slogan of "A Wholehearted Focus on Great Taste", First Baking has worked to bring high-quality and safe products onto the Japanese market.
Toyota Tsusho has been working to establish a balanced profit structure with the goal to achieve a 50:50 revenue ratio between auto and non-auto related business activities by 2015. Within the non-auto-related business areas, Toyota Tsusho has specifically highlighted the food industry as a key growth sector and has worked to expand this area in recent years.
Up to now, both companies have been developing a cooperative relationship with one another through the buying and selling of major raw materials.
Reasons for Strengthening Commercial and Capital Agreement
Strengthening the commercial and capital agreement between the two companies will lead to Toyota Tsusho providing know-how to First Baking in the areas of production management and logistics improvements. In addition, it will ensure the stable supply of raw materials to First Baking on a go-forward basis. At the same time, First Baking will provide support to Toyota Tsusho in the areas of bread-making technologies, and by doing so will contribute towards the expansion of Toyota Tsusho's overseas operations.
Further, the two companies are to work in cooperation with each other to ensure a bright future for both companies. Specifically, they will discuss methods to strengthen cost competitiveness through the efficient use of management resources, deepen personnel ties, and ultimately increase corporate value.
Future Outlook
The future will see Toyota Tsusho and First Baking work to apply their various levels of know-how and strengthen its cooperative relationship. For example, Toyota Tsusho will bring its know-how in areas such as global network management, production management and logistics improvements, among other areas to the relationship, while First Baking will bring its know-how in areas such as planning, manufacturing, and retail and wholesale sales of various food products. The ultimate vision of this enhanced relationship is to further develop the food business areas of both companies.
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