BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

distributed food service juice for institutional customers,such as schools and hospitals; provided private-labeljuice to large-scale retail chains; and engaged in contractmanufacturing for major soft drink manufacturers. Byadding CPF as a subsidiary, Toyota Tsusho aimed tomaximize the synergy with SSC and expand its soft drinkbusiness in the U.S.In May 2016, Toyota Tsusho acquired through CPFthe sherbet business of Ridgefield’s Brand Corp. (RBC),a commercial sherbet manufacturer, as part of a plan topursue continued expansion of its North American softdrink business.2 Business Development in CanadaEstablishment of Toyota Tsusho CanadaCanada is the world’s second-largest country by totalarea and is rich in resources such as oil and natural gas.In 2003, Toyota Tsusho made TTAI’s Ontario Officeindependent, establishing Toyota Tsusho Canada, Inc.,with offices in Cambridge and Woodstock, Ontario.The establishment of the new company meant thatToyota Tsusho could focus on trading in machinery,equipment, and materials for automakers. Toyota Tsushosubsequently established Maple Automotive Corp.(MAC), a tire and wheel assembly company, and GreenMetals Canada, Inc. (GMCI), a company that conductedindoor scrap recycling. GMCI commenced operations inDecember 2007.The Energy Business in CanadaIn September 2009, Toyota Tsusho and Chubu ElectricPower Co., Inc., made a joint investment in the GorewayPower Station project that had been developed by SitheGlobal Power, LLC, and that had started commercialoperations in June that year.Toyota Tsusho also got involved in natural gasextraction in Canada, where it is said the amount ofdormant natural gas is equivalent to 200 years’worthof Japan’s annual consumption. In April 2012, ToyotaTsusho, through its Canadian subsidiary Toyota TsushoWheatland Inc. (TTWI), acquired a 32.5% interest in acoalbed methane gas reservoir owned by Encana Corp.,Canada’s largest natural gas producer. The goal of thisacquisition was to export of LNG to Japan from NorthAmerica starting in around 2024.3 Business Development in MexicoIn June 2002, in a joint venture with JFE, ToyotaTsusho established an electrical steel sheet processingbase in Mexico, Techno Steel Processing de Mexico, S.A.de C.V. (TSP). TSP commenced production in 2003.In April 2003, TSP took over Tomen’s electrical steelsheet processing business in Monterrey in northeasternMexico and turned that business into a base forprocessing electrical steel sheets used for generatorsand transformers. TPS processed electrical steelsheets used for transformers and motors in the region.TSP subsequently began delivering electrical steelsheets to major automakers and consumer electronicsmanufacturers, such as GE and Schneider Electric. InApril 2004, Toyota Tsusho established Valor Motriz, S.de R.L. de C.V. in the city of Reynosa through a jointinvestment with TTAI and in August 2006 opened a bodyand paint factory in Monterrey.In January 2012, Toyota Tsusho establishedMaruichimex, S.A. de C.V. as a joint venture withthe Maruichi Steel Tube Group (Maruichi America)and Marubeni-Itochu Steel Inc. to manufacture andsell automotive steel pipe products. In October of thesame year, Toyota Tsusho established Toyota TsushoProcessing De Mexico S.A. de C.V. (TTPM), a companywhich processes and sells stainless steel. This enabledToyota Tsusho to construct an integrated service structurespanning procurement to supply of materials in Mexico.In July 2015, Toyota Tsusho, TTAI, and ToyotsuSteel Pipe & Tubular Products Co., Ltd., joined forcesto acquire and establish Toyota Tsusho Steel Pipe deMexico S.A. de C.V. This steel pipe processing companyToyota Tsusho Canada170