BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

A Molten Aluminum Businessis Born in Missouri, the U.S.It was in the U.S. that Toyota Tsusho jumpedfeetfirst into the molten aluminum business. Itsfirst molten aluminum plant was built right nextto TMC’s engine plant in Missouri, the U.S.,in1998. The business involved melting the scrapaluminum generated so abundantly in the U.S.and supplying the molten metal directly toTMC’s engine plant.Easily processed lightweight aluminum isoften used for automobile parts. There are twotypes of aluminum: virgin aluminum ingotsmanufactured from bauxite and recycledaluminum ingots refined from scrap. ToyotaTsusho made the latter and became one ofthe world’s most successful manufacturersof recycled aluminum ingots. The recycledaluminum ingot industry is highly competitive;the product has low added value, and itis difficult for companies to differentiatethemselves from the competition. However,if the recycled aluminum can be turned intomolten aluminum, its added value increasesconsiderably.In general, aluminum scraps are eitherremade into ingots or turned into moltenaluminum. However, the process for makingmolten aluminum is more efficient and emitsless carbon dioxide, enabling a larger degreeof energy savings. On the other hand, since theproduct is liquid, it is less efficient to transport.Toyota Tsusho resolved this issue by buildingits molten aluminum plant right next to TMC’sengine plant.Another benefit of Toyota Tsusho’s forayinto the molten aluminum business was thatthe incorporation of high-value-added recycledmolten aluminum into TMC’s supply chainmanagement (SCM) would allow aluminum tobe recycled within the Toyota Group. It was forthese anticipated benefits that Toyota Tsushodecided to establish a molten aluminum plantin the U.S.Going It Alone?Building aPlant in IndonesiaWith success in the U.S. under its belt,Toyota Tsusho looked to Europe and Asia,starting a molten aluminum business in Polandand launching commercialization activities inIndonesia in 2003. A plant was constructed inIndonesia next to a Toyota Group wheel plantwith the goal of supplying molten aluminumalloy for wheels.The project hit a snag, however, whenthe local manufacturer with whom ToyotaTsusho planned to partner suddenly pulledout. Busy with projects in other countriesthat were moving ahead at the same time, themanufacturer had decided that it would not beable to work with Toyota Tsusho in Indonesia.Nevertheless, Toyota Tsusho felt that it hadMolten aluminumStories189