Mitsubishi Corporation (MC), Japan’s largest trading company, has approved the purchase of an additional stake in Toyo Tire & Rubber Co, LTD (Toyo), Hyogo-headquartered tyre maker, for 50.9 billion yen via subscription to a private placement of shares and has entered into a capital alliance agreement with Toyo. The purchase of these additional shares will increase MC’s shareholding in Toyo from 3.05% to 20%.
The companies’ business alliance covers reinforcement of sales capabilities – establish joint task force for each region (Japan, China, Europe, Middle East and Africa, Asia) to develop marketing channels and progressively strengthen sales, logistics, and operations; enhancement of technological capabilities – promote external cooperation on areas such as “Research on next-generation materials”, “Advanced development of manufacturing technology”, and “Utilisation of AI and IoT technologies” looking ahead on the future mobility society; reinforcing Resources – reinforce Toyo’s human resources capacity by delegating executives to Toyo from MC with a view to promoting business management at Toyo and its group companies and strengthening its management base.
Meanwhile, the capital increase is expected to further strengthen the cooperative relationship between the two companies and will serve as funding for capital investment aimed at strengthening Toyo’s global business foundation and improving its medium- to long-term corporate value. The funds will be used for Increased production capacity at the US tyre plant; increased production capacity at the Malaysia tyre plant; construction of new production base; and, expansion of truck and bus tyre production facilities.