Toyoda Gosei Opens New Plant in Central China

Rhea-AI Summary

Toyoda Gosei's subsidiary, TG Zheng Ao, has relocated to a new, larger manufacturing plant in Shiyan, Hubei, China, officially inaugurated on July 13. The new facility increases land area from approximately 14,000 m² to 60,000 m², enabling enhanced production capacity to meet growing customer demand. The move follows prior expansions in June 2021 aimed at improving operational efficiency. President Toru Koyama emphasized the company's commitment to local economic growth through this expansion, enhancing their role in the regional automotive supply chain.

Positive

• Expansion to a larger facility increases production capacity.
• New plant area growth from 14,000 m² to 60,000 m² enhances operational efficiency.
• Commitment to meet rising customer demand, especially in central China.
• Potential for greater local economic impact through increased business operations.

Negative

• None.

Weatherstrip manufacturer TG Zheng Ao moves to a larger plant in a new location

KIYOSU, Japan--(BUSINESS WIRE)-- Toyoda Gosei Co., Ltd. (TOKYO:7282) Group company Hubei Toyoda Gosei Zheng Ao Rubber and Plastic Sealing Technology Co., Ltd. (TG Zheng Ao) held an opening ceremony on July 13 to celebrate its move to new and larger plant.

Opening ceremony (Photo: Business Wire)

Toyoda Gosei President Toru Koyama, participating in the ceremony online, said “With the establishment of this new plant we can meet our customers’ needs for production increases in central China. We hope to make a greater contribution to the regional economy through growth of the business as a company rooted in the community.”

TG Zheng Ao became a Toyoda Gosei Group affiliate when the Group invested in Hubei Rock*, an independent supplier of weatherstrips (automobile door and window sealing products) in Central China, in December 2018. Later, to handle the growing sales of weatherstrips in the same region, the previous plant was moved to a neighboring industrial park and expanded in June 2021. Productivity at the plant was improved by adopting a more efficient production layout.

^*TG Zheng Ao and its predecessor Hubei Rock have a history of providing weatherstrips to Dongfeng Motor Corporation (one of China’s “Big Three” automakers) and other automakers, and it has become a core location for business expansion of the Toyoda Gosei Group in the Chinese interior.

Outline of TG Zheng Ao

Name	Hubei Toyoda Gosei Zheng Ao Rubber and Plastic Sealing Technology Co., Ltd.
Location	Shiyan, Hubei, China
Established	April 1995 (became Toyoda Gosei subsidiary in December 2018)
Capital	CNY46 million
Shareholders	Toyoda Gosei (China) Investment Co., Ltd. 60% Hubei Zhengao Automotive Accessories Co., Ltd. 40%
Products	Opening weatherstrips, door weatherstrips, glass runs, more
Land area Plant area	Approx. 14,000 m2 → After move approx. 60,000m2 Approx. 17,000 m2 → After move approx. 34,000m2
No. employees	302 (as of May 31, 2022)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220714005288/en/

Toyoda Gosei Co., Ltd.

Public Relations

Chihiro Suzuki

inquiry@mlist.toyoda-gosei.co.jp

Source: Toyoda Gosei Co., Ltd.

FAQ

What is the significance of TG Zheng Ao's new plant opened in July 2023?

The new plant enhances production capacity for TG Zheng Ao, meeting growing demand in central China.

How large is the new facility for TG Zheng Ao?

The new facility has an area of approximately 60,000 m², significantly larger than the previous 14,000 m².

When was the opening ceremony for TG Zheng Ao's new plant held?

The opening ceremony was held on July 13, 2023.

What products does TG Zheng Ao manufacture?

TG Zheng Ao manufactures weatherstrips for automobiles, including door and window sealing products.

How does this new plant impact Toyoda Gosei's operations?

This expansion is expected to improve productivity and allow for better service to their customers in the automotive industry.