Tomen and Toyota Tsusho Agree on Transfer of Non-Ferrous Metals Business
2002-05-28
Tomen Corporation and Toyota Tsusho Corporation today jointly announced that they 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. The 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. (For further details on Tomen's capital and business alliance with Toyota Tsusho, please see the attached fact sheet.)
The decision to transfer these businesses was made after 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.
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.
Based on the above reasons, Tomen and Toyota Tsusho 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. The outline of the transferred non-ferrous metal business is as follows:
| (1) | The scale of the transfer: 56 billion yen
(33 billion yen in Japan and 23 billion yen overseas)
The number of Tomen Group employees to be transferred: 24 employees
(14 employees in Japan and 10 employees overseas) |
| (2) | Tomen's holding shares to be transferred:
3 companies overseas (manufacturing companies of copper wire rods and wires in Malaysia, Vietnam and Indonesia) and 1 company in Japan |
| (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 |
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