Tomen and Toyota Tsusho to Integrate Business for Bunker Oil and Petroleum Products
2004-05-20
Tomen Corporation and Toyota Tsusho Corporation jointly announced today that they will integrate their bunker oil and petroleum product businesses on July 1, 2004.
These businesses are currently handled by Tomen's 100% owned subsidiary Tomen Petroleum (Singapore) Ltd. (TPSP) (annual turnover 43.5 billion yen) and Toyota Tsusho (annual turnover 14 billion yen).
The new company, Tomen Toyota Tsusho Petroleum (S) Pte. Ltd., aims to become a leading player in Japan's bunker oil business by effectively combining TPSP's established business power, supply capability and customer service system with Toyota Tsusho's extensive customer base. The market is now enjoying an upward trend, due to increased demand for reinforced ship bodies as a result of a boom in the shipping industry. Also, Toyota's marine transportation volume is increasing due to its global strategy.
Method of integration
Toyota Tsusho will acquire a 25% stake of TPSP from Tomen and will transfer business rights of its bunker oil business, and part of its overseas petroleum products business, to TPSP, Except Toyota Tsusho's Japanese domestic petroleum products business including bunker oil for coastal Vessel's.
Description of new company
| Name of the company: | Tomen Toyota Tsusho Petroleum (S) Pte. Ltd. |
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| Head office: | Singapore (Branch office in Tokyo) |
| Capital: | 2 million Singapore Dollars |
| Stockholders: | Tomen 75%, Toyota Tsusho 25% |
| Start of operation: | 1 July, 2004 |
| Objective trading volume: | 65 billion yen, year ending March 31, 2006. (Total trading transactions by TPSP and Toyota Tsusho in year ended March 31, 2004 was 57.5 billion yen) |
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