Agreement on Non-Ferrous metals business transfer from Tomen
2002-05-28
Toyota Tsusho Corporation and Tomen Corporation have reached an agreement to transfer Tomen's non-ferrous metals business to Toyota Tsusho as of June 1st, 2002, calling it "a mutually beneficial arrangement."
1. Reason for the transfer
The agreement is part of the capital and comprehensive business alliance established between the two companies on March 28, 2000, and a result of the coordinating committee's efforts to utilize the business expertise and management resources of both companies to strengthen their market positions in various business fields. The transfer of Tomen's non-ferrous metals business follows the successful transfer of Tomen's steel business to Toyota Tsusho in November 2000.
Toyota Tsusho, a member of the Toyota Group, expects this agreement with Tomen to further strengthen its functions and enhance its services to its customers. The metal field is Toyota Tsusho's largest core business. This agreement provides Toyota Tsusho with the opportunity to expand its non-automotive-related businesses, and to increase profitability in its overseas operations.
Tomen conducted a review of its entire business portfolio and determined to focus its management resources on selected core businesses including chemicals & plastics, textiles, foodstuffs, IT & telecommunications, and power supply. Tomen completes its withdrawal from its steel and non-ferrous metal business fields, enabling it to focus on core business fields.
Based on the above reasons, Toyota Tsusho and Tomen have concluded that the transfer of Tomen's non-ferrous metals business to Toyota Tsusho, as well as the transfer of steel business made in November 2000, is beneficial for both companies.
2. Business to be transferred
(1)The business
Annual sales: 56 billion yen (33 billion in Japan and 23 billion overseas)
The number of employees to be moved from Tomen Group: 24 employees (14 employees in Japan and 10 employees overseas)
(2)Tomen's holding shares to be transferred (Please refer to the below notes)
Overseas: 3 manufacturing companies of copper wire rods and wires
Japan: 1 aluminum-related business company
(3)The schedule of the transfer
May 28, 2002: Boards of both companies approved and signed the transfer agreement
June 1, 2002: Date of the transfer
(Notes)
1) Alpha Industries Bhd. (Malaysia)
Major shareholders: Tomen 29.9%, The Furukawa Electric Co., Ltd. 19.1%
Annual production capacity: 60,000 tons
Annual sales: 11.9 billion yen
2) CFT Vina Copper Co., Ltd. (Vietnam)
Major shareholders: Tomen 31%, The Furukawa Electric Co., Ltd. 32.7%
Annual production capacity: 60,000 tons
Annual sales: 4.7 billion yen
3) PT Tembaga Mulia Semanan (Indonesia)
Major shareholders: Tomen 15.1%, The Furukawa Electric Co., Ltd. 35.9%
Annual production capacity: 60,000 tons
Annual sales: 13.3 billion yen
4)ALINCO Inc. (Japan)
Tomen's holding share 0.26%
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