By Liz White, UT staff
Nagoya City, Japan-Toyota Boshoku Corp. and Toyota Tsusho Corp. announced 10 April that they are to invest Y330 million ($3 million) in setting up a joint venture-OOO Toyota Boshoku-to make vehicle seats in St Petersburg, Russia. This is the first move by Toyota Group suppliers into the Russian market, said a statement from the two groups.
OOO Toyota Boshoku will start to produce seats for the Toyota Camry at the end of 2007 at the St Petersburg plant of OOO Toyota Motor Manufacturing Russia, a subsidiary of Toyota Motor Corp., the announcement said.
The operation will initially make 20000 units a year and employ about 90 people. Toyoto Boshoku will hold 95 percent of the equity and Toyota Tsusho 5 percent, the joint statement added.
Toyota Boshoku has four strategic areas for its global business development: North and South America, China, ASEAN, and Europe, with a network of 55 plants and offices in 18 countries. Setting up the Russian company will "further expand its seat business worldwide," the statement commented.
Toyota Tsusho has been active in the Russian market since opening an office in Moscow in 1985, setting up the first Toyota car dealership in Russia in 1991. With this background, Toyota Tsusho can support the new venture, especially in external affairs and logistics.
Seat maker Toyota Boshoku, headquartered in Kariya City, Japan, also makes automotive interior systems, filters and power train components, and other car components, as well as fabric parts. The group's sales for fiscal 2005 (ended March) were Y456 311 million, and it has some 6500 employees.
Toyota Tsusho, with headquarters in Nagoya City, trades domestically and internationally in raw materials and products. Group turnover in fiscal 2005 (ended March) was Y 315 830 million, with 2910 employees.