Toyoda Gosei to Invest in Interior and Exterior Parts Manufacturing Company in Central China

Rhea-AI Summary

Toyoda Gosei Co., Ltd. (TOKYO:7282) is investing in Wuhan Binyu Auto. Part Co., Ltd. to enhance its automotive parts supply chain in central China. This investment aims to boost sales by combining Toyoda Gosei’s engineering strengths with Ningbo Yibin's established partnerships with local automakers. The company now owns 34% of Wuhan Binyu, which specializes in interior and exterior automotive parts, enhancing its presence in a crucial manufacturing region.

Positive

• Investment in Wuhan Binyu strengthens supply chain for automotive parts in central China.
• Acquisition of 34% stake enhances growth potential and regional presence.
• Combining engineering expertise with established local partnerships may increase sales.

Negative

• None.

KIYOSU, Japan--(BUSINESS WIRE)-- Toyoda Gosei Co., Ltd. (TOKYO:7282), through its regional headquarters in China, Toyoda Gosei (China) Investment Co., Ltd. (TG China), is investing in Wuhan Binyu Auto. Part Co., Ltd. This move will strengthen Toyoda Gosei’s supply system for interior and exterior automotive parts in central China.

Production locations for interior and exterior products in China (Graphic: Business Wire)

Wuhan Binyu is a production company in the Yibin Group (Ningbo Yibin Electronic Technology Corp.) that supplies interior and exterior automotive parts in China’s major automobile manufacturing regions (north China, south China, central China). It provides console boxes and cockpit components to Dongfeng Honda Automobile Co., Ltd. and Dongfeng Motor Co., Ltd. (Dongfeng Nissan) in central China. With this investment, the Toyoda Gosei Group aims to grow its sales in China by merging its engineering and production expertise as a global supplier of plastic parts with the business partnership that Ningbo Yibin has built over many years with automakers in China.

Outline of Wuhan Binyu (investee company)
Company name	Current: Wuhan Binyu Auto. Part Co., Ltd. New: Yibin Toyoda Gosei (Wuhan) Auto Parts Co., Ltd.
Location	Wuhan, Hubei, China
Established	June 2013
Capital	CNY 20.0 million
Shareholders	Current: Ningbo Yibin 100% New: Ningbo Yibin 66% Toyoda Gosei (China) Invest. Co., Ltd. 34%*
Products	Interior and exterior products (consoles, registers, more)
Land area Building area	Approx. 27,000 m2 Approx. 32,000 m2
No. employees	174 (as of May 31, 2022)

* TG China purchased 34% of shares from Ningbo Yibin for approx. JPY 350 million. Calculated at 1 Chinese yuan = 17.5 Japanese yen

Outline of Ningbo Yibin
Name	Ningbo Yibin Electronic Technology Corp.
Location	Ningbo, Zhejiang, China
Established	August 2006
Capital	CNY 92.80 million
Shareholders	Wang Jianhua, others
Products	Interior and exterior products
No. employees	2,203 (as of May 31, 2022)

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220705005080/en/

Toyoda Gosei Co., Ltd.

Public Relations

Chihiro Suzuki

inquiry@mlist.toyoda-gosei.co.jp

Source: Toyoda Gosei Co., Ltd.

FAQ

What is the recent investment made by Toyoda Gosei (TGOSY)?

Toyoda Gosei is investing in Wuhan Binyu Auto. Part Co., Ltd. to improve its supply chain for automotive parts in central China.

What percentage of Wuhan Binyu does Toyoda Gosei now own?

Toyoda Gosei now owns 34% of Wuhan Binyu after purchasing shares from Ningbo Yibin.

How will Toyoda Gosei's investment in Wuhan Binyu affect its sales?

The investment is expected to boost Toyoda Gosei's sales by leveraging local partnerships and engineering expertise.

Where is Wuhan Binyu located?

Wuhan Binyu Auto. Part Co., Ltd. is located in Wuhan, Hubei, China.

What types of products does Wuhan Binyu manufacture?

Wuhan Binyu specializes in interior and exterior automotive parts, including console boxes and cockpit components.