Toyo announces Chinese cushion JV
Toyo Tire & Rubber Co., Ltd. has agreed to establish a China-based joint venture company to manufacture and distribute urethane seat cushions for transportation machinery. The agreement was signed with Guangdong TGPM Automotive Industry Group Co., Ltd., headquartered in Foshan City, Guangdong Province.
Flexible urethane parts are used in passenger cars and motorcycle seats, and Toyo says its proprietary urethane material technology has achieved a lighter weight material that provides improved seating comfort. TGPM is building its sales network with automobile manufacturers, through the manufacture and distribution of body sealers and the development of car dealerships in the Huanan Region, centred around Foshan City.
The companies stated that the establishment of the joint venture is based on the harmony between their business strategies. Toyo wishes to enter the high value-added urethane seat cushion market in China, while TGPM seeks to further expand its auto manufacturer business. Toyo’s mid-term business plan 2011 stated the new global development of its urethane business as one of its strategies for the Divertech Business Unit, making the new joint venture in accordance with its growth strategy.