BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

division went on to play an important role in the supplyof raw materials in the value chain of the automotiveindustry. Toyota Tsusho has been supporting TMC bysetting up coil centers in Japan as well as overseas andthrough on-site technical guidance at local plants.In 1988, Toyota Tsusho America established the TAIGeorgetown Steel Center, a service center located inGeorgetown, Kentucky, to begin supplying steel destinedfor the TMC Kentucky Plant. Toyota Tsusho continuedto leverage experience and expertise from the steel sheetprocessing business even after the 2000s as it promotedthe blanking business in overseas markets. Built in theU.S., the blanking business gained a strong followingfrom customers such as TMC, later expanding to onecountry after another in Europe and Asia until ToyotaTsusho eventually had blanking operations in Tianjin,China; the Czech Republic; Turkey; Australia (the planthere was later closed); Guangzhou, China; Texas, theU.S.; Thailand; South Africa; India; Brazil; Indonesia;Mississippi, the U.S.; Malaysia; and Mexico that wereimportant profit centers for the Metals Division.4 Start of the Molten Aluminum BusinessIn May 1997, Toyota Tsusho partnered with DaikiAluminium Industry Co., Ltd., in a joint venture tolaunch MOST, a molten aluminum and reclaimed alumiscrapsmanufacturer, to start operations in the U.S. inDecember of the following year. Using this experiencein Poland, in January 2003 Toyota Tsusho partneredwith Daiki Aluminium Industry Co., Ltd., and ToyotaTsusho Europe to form the joint venture Poland SmeltingTechnologies Sp. z o.o., which started operating inFebruary 2004.July 2004 saw the start of construction of a factory forChangchun Tong-Li Aluminium Smelting TechnologyCo., Ltd. (CAST), the molten aluminum joint venturebetween Toyota Tsusho and China’s FAW Group. ToyotaTsusho, Guangzhou Automobile Group, and DaikiAluminium Industry Co., Ltd., meanwhile, enteredanother joint venture, Guangzhou Aluminium SmeltingTechnology Co., Ltd. (GAST), to supply moltenaluminum to a TMC engine plant adjacent to it. In March2007, CAST, in which Toyota Tsusho infused 70% ofcapital, won the Quality Excellence Award from FAWToyota Changchun Engine Co., Ltd. (FTCE), proving thehigh quality of its molten aluminum.In Japan, Toyota Tsusho succeeded, in executing aland-sharing agreement with Fukuoka Prefecture andKanda-machi to launch Kyushu Smelting Technologies(Q-ST) with a 65% stake together with Daiki AluminiumIndustry Co., Ltd., with a 35% stake in March 2005.Another plant, the T-ST Tahara Plant, was completedin 2006, and the company started to supply moltenaluminum to a main TMC factory for the first time.Hokkaido Smelting Technology was establishedthereafter but the financial crisis caused by the LehmanBrothers bankruptcy significantly reduced its sales, andthe three companies integrated in March 2011.Since then, this integrated company T-ST has becomethe mother plant of 17 plants now operating at sites inChina, India, the U.S., and Mexico.5 Growth of the Green Metals BusinessIn May 1993, Toyota Tsusho established AmericanRecyclers of Kentucky Inc. in the U.S. to providewaste management services to ensure proper collectionand processing of waste generated at manufacturingplants. The company then set up an indoor green metalscompany in the U.S. in 2000 to collect and process metalscrap at customers’locations or nearby and this modelwas expanded later to 22 locations in 11 countries andregions, including China, South Africa, Thailand, India,Europe, Canada, Brazil, and Japan.The start of green metals business in Japan wasPoland Smelting TechnologiesGreen Metals business (France)132