Toyota Tsusho to Establish Automotive Steel Pipe Processor in Mexico
Toyota Tsusho Corporation ("Toyota Tsusho") announces it will establish an automotive steel pipe processing company, Toyota Tsusho Steel Pipe de Mexico S.A. de CV ("Toyota Tsusho Steel Pipe de Mexico"), as a joint venture with Toyota Tsusho Mexico, S.A. de. C.V. ("Toyota Tsusho Mexico") and Toyotsu Steel Pipe & Tubular Products Co., Ltd. ("Toyotsu Steel Pipe & Tubular Products"). The new company will be established in July 2015 in Parque Industrial Querétaro, State of Querétaro, Mexico, and business operations are scheduled to begin in October 2015.
Mexico is one of the countries in which Toyota Tsusho is focusing on developing new markets for its investments. The company has carried out market research with the aim of creating new business in the Mexican automotive field, which is expected to continue growing in the future. In Querétaro, Japanese-affiliated auto parts manufacturers are entering the market and expanding their factories to support increased production of four-wheel vehicles by Japanese automakers as well as the growth of various industries in the region. Japanese automakers are also building plants in the neighboring State of Guanajuato. Amid this activity, the demand for processed automotive steel pipes has surged, and users are increasingly seeking local procurement options.
Since February 2012, Toyota Tsusho has had a stake in the management of MARUICHIMEX S.A. de C.V., a Mexican joint venture that manufactures various steel pipe and tube products and is part of the Maruichi Steel Tube Group (Toyota Tsusho is a 20% owner of MARUICHIMEX S.A. de C.V.). Toyota Tsusho is now partnering with Toyotsu Steel Pipe & Tubular Products, which has pipe processing know-how, and Toyota Tsusho Mexico, an expert in the local market, to establish a new company which can leverage the existing logistics network to expand the value chain and serve the local procurement needs of customers.
|Company name||Toyota Tsusho Steel Pipe de Mexico S.A. de C.V.|
|Location||Parque Industrial Querétaro, State of Querétaro, Mexico|
|Establishment||July 2015 (tentative schedule)|
|Business description||Cutting of various steel pipes|
|Shareholders||Toyota Tsusho, 70%; Toyota Tsusho Mexico, 20%; Toyotsu Steel Pipe & Tubular Products, 10%|
Overview of Companies with Capital Stake
Company name Toyota Tsusho Corporation Location 9-8, Meieki 4-chome, Nakamura-ku, Nagoya City, Aichi Prefecture, Japan Establishment July 1, 1948 Capital ¥ 64.936 billion Representative Jun Karube, President & CEO Business description Domestic wholesale, export/import & inter-third country trading, insurance agency business, etc. Employees Unconsolidated: 3,551 (as of March 31, 2014; including employees on assignment to other companies and excluding employees on assignment from other companies)
■Toyotsu Steel Pipe & Tubular Product
Company name Toyotsu Steel Pipe & Tubular Products Co., Ltd. Location 3-9 Toshincho, Obu City, Aichi Prefecture, Japan Establishment October 15, 1965 Capital ¥310 million Representative Takashi Yamada, Representative Director Business description Sale of various steel pipes, manufacture and processing of solid drawn steel pipes, steel pipe cutting and processing Employees 149
■Toyota Tsusho Mexico
Company name Toyota Tsusho Mexico, S.A. de. C.V. Location Calle Septima No. 300 Suite 1020 Parque Industrial Monterrey Apodaca, NL Mexico Establishment April 1995 Capital 2,742,000 MXN Representative Tetsuo Horimoto, Representative Director Business description Domestic wholesale, export/import & inter-third country, etc. Employees 85