BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

Even though Brazil suffers from lagging infrastructuredevelopment, power shortages, and security problems,the country is a potential source of major businessopportunities. Through its Brazilian subsidiary, S.C.Toyota Tsusho do Brasil Ltda., Toyota Tsusho had beenlooking at developing businesses in underground waterstorage systems, bioplastics, biodiesel, biomethanol, andsolar panel importing while continuing to support theBrazilian operations of TMC.In August 2011, Toyota Tsusho commenced operationof a plant for TMC’s subcompact car Etios near the siteof Toyota do Brasil Ltda. (TDB) in Sao Paulo State andlaunched a blanking (deformation processing of steelmaterials) business. Ten years earlier, in August 2001,Toyota Tsusho established a logistics company as a jointventure with Kimura Unity Co., Ltd., and S.C. ToyotaTsusho do Brasil to provide parts procurement and Milkrunservices for TDB.Sales of Gas Heat Pump Units in BrazilIn March 2014, S.C. Toyota Tsusho do Brasil entereda business tie-up with Companhia de Gas de Sao Paulo,Brazil’s largest supplier of natural gas, for the sale of gasheat pump units (GHP) in Brazil. Previously in January2013, the company signed an agency agreement withYanmar Energy System Co., Ltd., and began sellingGHPs in Brazil.Entry into the Grain Infrastructure BusinessIn May 2015, Toyota Tsusho bought out NovaAgriInfra-Estrutura de Armazenagem e Escoamento AgricolaS.A. (NovaAgri) and made it a subsidiary. NovaAgrioperates grain infrastructure in central and northeasternBrazil. It owns warehouses, including in the state of MatoGrosso where grain production thrives; conducts railbasedtransshipment; and operates a terminal at ItaquiPort in Sao Luis City.The purchase of NovaAgri provided Toyota Tsushowith the warehouses to start a grain collection business incentral and northeastern Brazil, where grain productionflourishes. This upstream business enabled Toyota Tsushoto ensure downstream customers of a stable supply ofgrain.Engaged in a Lithium Project in ArgentinaIn March 2012, Toyota Tsusho became a developmentpartner of Australian resources company OrocobreLtd., which held mining rights to lithium in Argentina.Lithium is the raw material used in the lithium batteriesthat are essential for mobile devices and electric vehicles.In December 2012, Toyota Tsusho began constructing alithium plant at Olaroz salt lake situated at an altitude of4,000 meters above sea level. Production began there inAugust 2014.Manufacturing Iodine in ChileIn May 2010, Toyota Tsusho and its local partnerACF Minera S.A. established an iodine manufacturingcompany, Algorta Norte S.A., in Chile, a country withextensive deposits of iodine and of other minerals, suchas copper and lithium. Iodine in particular was in highdemand worldwide, and Toyota Tsusho wanted to extendits participation in the iodine business to its manufacture.As a result of its activity in Chile, Toyota Tsusho becamethe only general trading company in the world with largebases in the three major iodine-producing countries:Japan, the U.S. and Chile.Expansion of Bases in South American CountriesIn March 2007, Toyota Tsusho with the existingdistributor in Ecuador established a new distributor,Toyota del Ecuador S.A., which became Ecuador’snational distributor. And also established the Central PartsDepot (CPD) to support the supply of parts throughoutEcuador.In Cuba, Toyota Tsusho opened an office in Havana inApril 2017. And in Uruguay, Toyota Tsusho subsidiaryEurus Energy Holdings Corp. launched a wind powerOlaroz salt lake (Argentina)176