It is reported that Toyota Boshoku Corporation, Kawashima Selkon Textiles Co Limited and Toyota Tsusho Corporation will enter into discussions to consider merger of their businesses with the objective of becoming the world's leading company of fabrics for automobiles, trains, aircrafts etc.
Objective of the business merger is the automotive fabrics industry is anticipated to become increasingly competitive due to the effects of further globalization and the push towards improved functionality and design. In response to these market conditions, the companies have decided to begin consideration of a merger of their businesses so as to strengthen their global expansion efforts and increase their competitiveness, utilizing respective advantages, with the aim of
Strengthening the sales, development and production bases by cooperating to achieve synergic effects across areas of technological expertise, customer base, business field and geographical region, and achieving improved efficiency through integrated process of operation
Establishing fabric development and production system capable of creating both cutting edge designs and highly functional fabrics that not only reflect the particular requirements of the whole car interior spaces but which also take into account environmental and health concerns
Method of the business merger is the automotive fabric businesses of Toyota Boshoku, Kawashima Selkon Textiles and Toyota Tsusho are to be split out, and all the three businesses are to be integrated. The specific details of the arrangement will be decided amongst the three companies in the upcoming future.
Schedule for the business merger is execution of MoU in mid June 2009 and merger of the relevant businesses in April 2010. The specific schedule is to be decided amongst the three companies in the upcoming future.
Toyota Tsusho has been growing steadily together with the automotive business as the main axis. Tomen also has been developed with a wide range of business and customers in non-automotive field. Two companies merged on April 1st 2006 and started as newborn Toyota Tsusho Corporation.