BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

Ltd., from Shenzhen City. The new company startedoperations in January the following year. The growingautomobile market in China required the construction ofa stable and efficient logistics system for automobiles.Targeting marine transportation, Toyota Tsusho movedinto the coastal transportation business. Toyota Tsushowas tasked with constructing distribution networks forand sales of automobiles in China.In April 2005, Toyota Tsusho set up Guangzhou GACToyotsu Logistic Equipment Co., Ltd. (GTLE), as a jointventure with Kimura Unity Co., Ltd., Sanko, and a localcompany Guangzhou GAC Development Co., Ltd., tofurther strengthen its logistics function in the region. Thiswas the first joint venture by four different companies inthe logistics equipment field. Combining the strengthsof each contributing company, GTLE began handlinglogistics equipment for the automotive industry.Information Technology Businesses in ChinaLeveraging knowledge it acquired in Japan, ToyotaTsusho also became involved in various businessesrelated to information technology (IT) in China. InAugust 2001, Toyota Tsusho established a joint venturewith KDDI in Beijing, KDDI China Corp., which startedproposing a wide range of IT solutions to TMC and otherToyota Group companies mainly in northern China. Inthe same year, Toyota Tsusho made a capital investmentin Shanghai Hong Ri International Electronics Co., Ltd.,a joint venture company established by Tomen Corp. anda local company Shanghai Huahong (Group) Co., Ltd.,providing the readiness the company needed to expand itselectronic components business in China. As part of aninitiative to develop urban infrastructure in China, ToyotaTsusho also entered the multifunctional mechanicalmultilevel parking business?a business that utilizeselectronic payment, car navigation, and IT systems.In June 2004, Toyota Tsusho established China NaviSystem Co., Ltd., as a joint venture with NavInfo Co.,Ltd., and started selling digital maps and apps for carnavigation systems and telematics services.Following that, in December 2005, Toyota Tsusholaunched a network business in China, establishingTT Network Integration China Co., Ltd. (TTNIC), acompany that was 75% owned by Toyota Tsusho and25% owned by Toyotsu Syscom Corp. TTNIC thenestablished branches in Tianjin and Guangzhou inaddition to Beijing, built a factory and sales network forthe expanding Toyota Group, and launched a systemsmaintenance business.Promotion of the HEV BusinessTo promote its HEV (hybrid electric vehicles) businessin China, in 2010, Toyota Tsusho set up the HEVBusiness Promotion Section as an cooperate managementtask force whose mission was to develop businesses ina wide range of fields, including charging infrastructureand electric vehicle components.Then, in December 2011, Toyota Tsusho began toconsider a strategic partnership with China Potevio Co.,Ltd., a major information and communications systemcompany, with the goal of developing new energyvehicle?related businesses, including EV charginginfrastructure operations. In 2015, Toyota Tsusho begansupplying components that constituted the key materialsof lithium-ion batteries.Expansion of the Hygiene Materials BusinessCentered on SAPToyota Tsusho began wanting to capitalize on theanticipated increase in demand for disposable diapersdue to China’s economic growth and improved livingstandards. With this aim, it invested in San-Dia PolymersCo., Ltd. (renamed SDP Global Co., Ltd., in 2013),a company that was established by Sanyo ChemicalIndustries, Ltd., and entered the disposable diapermarket. In 2005, San-Dia Polymers’wholly ownedlocal subsidiary San-Dia Polymers (Nantong) Co.,Ltd., established in 2003, started local production ofSAP (superabsorbent polymers) and began supplyingthe product to disposable diaper manufacturers withBakery business that spread as far as the south of ChinaHistory155