BookTitleToyota Tsusho 70-Year History

Summary

Toyota Tsusho 70-Year History

Chapter 2The Challenge to ExpandBusinessSection 1 Strengthening Existing Businesses1 Business Development of the Metals DivisionReorganization from 10 Departments, One Section to Nine Departments, OneSectionIn September 1991, functions that had been divided into multiple parts wereconsolidated as the Metals Division. Based on the policy of flattening theorganization, in 1994, the Metals Division was organized into 10 departments andone section comprising the Metals Management Section, Steel Sheet Department,Steel Bars and Tubes Department, Jewelry Department, Construction Department,Nonferrous Metals Department, Steel Raw Material Department, Steel TradeDepartment, and the Tokyo, Osaka, and Hamamatsu Metal Departments. In 1999,this became nine departments and one section when the Steel Trade Departmentwas abolished and the Metals Management Section was replaced with the MetalPlanning Section.Under this organization, in the 1990s the Metals Division aimed to break awayfrom traditional general trading company functions and worked on improvingits processing capabilities, strengthening its sales functions, and developing newbusinesses.Response to TMC Production ExpansionIn 1990, as TMC produced a record high of 4.21 million units in Japan, ToyotaTsusho’s Metals Division focused on expanding its logistics capabilities, includingthe Toyota Steel Center. As a stopgap measure, Toyota Tsusho looked to improvethe efficiency of its established facilities and outsource business operations, and atthe same time planned to install a new line at the Toyota Steel Center. However,this plan was canceled due to a sudden drop in demand due to the bursting of thebubble economy. As demand recovered, Toyota Tsusho improved its machiningability while supporting the launch of coil centers in overseas locations such as theU.S., Asia, China, and Europe, in line with TMC’s overseas expansion.In 1991, TMC established group companies Toyota Motor Kyushu, Inc., andToyota Motor Hokkaido, Inc., and expanded into Kyushu and Hokkaido. In April1992 Toyota Tsusho also opened a sales office in Tomakomai, Hokkaido, and,in October of the same year, it opened a steel sheet warehouse at the KitakyushuOffice of the Kyushu Sub Branch.Toyota Steel Center Co., Ltd.Kitakyushu Office and steel sheet warehouse(opened in October 1992)History95