BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

Section 5 Events in the North America Region1 Business Development in the U.S.A Trio of Metal Businesses That Spread from the U.S.to the WorldThe U.S. economy had just started to recover afterthe burst of the dotcom bubble in around 2002 whenit was hit again by the global financial crisis that wasprecipitated by the bankruptcy of the Lehman Brothersin 2008. The economy subsequently bounced back andshowed steady growth, remaining the world’s largesteconomy, despite some bumps in the road.Through it all, Toyota Tsusho continued to supportTMC’s U.S. strategy by setting up service centers at eachof TMC’s plants in Kentucky, Mississippi, Indiana, andTexas. At the core of Toyota Tsusho’s operations were atrio of metal businesses: steel blanking, molten aluminumproduction, and scrap metal recycling (green metals). Allwere launched in the U.S. and all later spread to Japanand the rest of Asia, to Europe, and to other parts of theworld.Toyota Tsusho also focused on nonautomotive businessfields, such as a logistics business that evolved fromMilk-run to Cross-dock, a natural gas?fired powerbusiness aimed at building a new power generationsystem in North America, and a soft drink business.Engaging in the Logistics BusinessIn 2001, Toyota Tsusho America Inc. (TTAI) joinedforces with America’s largest logistics provider, RyderSystem, Inc., to establish a logistics planning andoperation company, TTR Logistics LLC, in Florence,Kentucky. Combining the operational expertise ofTTAI’s logistics center, including in cross-docking withthe transportation expertise and network of Ryder, TTRLogistics offered proposals for efficient delivery systemsand conducted consigned logistics services.In August 2001, AT&O Tech Inc. was established asa joint venture between TTAI and logistics containermanufacturer Okata Industry Co., Ltd. Leveraging theproduction technologies of Okata Industry, the newcompany began supplying dedicated high-quality,low-cost racks for use in distributing engines andtransmissions to Toyota Group companies engaged in thelocal production of automobiles in North America.Expanding the Automotive Parts BusinessIn July 2003, Toyota Tsusho, Kobe Steel, Ltd.,and Mitsui & Co., Ltd. launched joint venture KobeAluminum Automotive Products LLC to manufacture andsell aluminum forged parts for automobile suspensions.Established to enable the localization of materialsand parts purchasing being promoted by Japaneseautomakers, the new company commenced operations inJune 2005.Operation of a Natural Gas?Fired Power PlantBefore merging with Toyota Tsusho, Tomen hadattempted to expand its power generation business buthad to abandon the effort due to financial difficulties.Upon its merger with Tomen in 2006, Toyota Tsushomade the decision to reenter the North American powergeneration market. Toyota Tsusho invested in the OysterCreek Power Station in Texas in 2010, followed bythe Shore Power Plant in New Jersey in 2013, the St.Charles Power Station in Maryland in 2014, and theSalem Harbor Power Station in Massachusetts and the St.Joseph Energy Center in Indiana in 2015.Expanding the Soft Drink BusinessIn December 2014, Toyota Tsusho America Inc.(TTAI) and Sapporo International Inc. acquired CountryPure Foods Inc. (CPF), a major U.S. food service juicemanufacturer, through U.S. juice manufacturer SilverSprings Citrus, Inc. (SSC), a joint venture established byTTAI and Sapporo International. CPF manufactured andTTR Logistics joint venture signing ceremony in the U.S.History169