OREANDA-NEWS. June 01, 2011. Toyobo Co., Ltd. (Headquarters: Kita-ku, Osaka; president: Ryuzo Sakamoto) and Toyota Tsusho Corporation (Headquarters: Nakamura-ku, Nagoya; president: Junzo Shimizu) have made the decision to establish a joint venture manufacturing and sales company for airbag fabrics in Jiangsu Province in China. The new company will be formed in May, 2011, and production is scheduled to begin in April 2012.

1. Outline of the Joint Venture
 Company name: Toyobo Automotive Textiles (CHANGSHU) Co., Ltd.
 Date of establishment: May 2011
 Paid-in capital: Approximately \500 million
 Ownership: Toyobo, 70%, and Toyota Tsusho, 30%
 Location: Changshu City, Jiangsu Province in the People’s Republic of China
 Number of employees: About 30
 Lines of business: Manufacturing and sales of airbag fabrics
 Date of start-up of production: April 2012
 Investment amount: \1.1 billion

2. Background of Establishment
 Toyobo has manufactured airbag fabrics in Japan and Thailand for more than 20 years and has sold the output mainly to Japanese automotive parts manufacturers. In recent years, Japanese automotive manufacturers have begun to produce cars in China and tended to procure parts locally. Furthermore, the market for automobiles in China is expected to expand at a rate of approximately 20% annually. Not only Japanese automakers but most of the European, U.S., and Chinese automotive companies have already entered the market for its attractive growing sales.

In view of this market growth, Toyobo and Toyota Tsusho have decided to establish a manufacturing and sales company for airbag fabrics to expand their airbag-related business activities. Toyobo will manage the plant and provide technical assistance for the production; on the other hand, Toyota Tsusho will draw on its extensive business experience in China and be in charge of procuring raw materials and sales.

3. Future Plans
 The joint venture will be established in May 2011, and production is scheduled to begin in April 2012. Toyobo and Toyota Tsusho are scheduled to utilize this new joint venture as a base for expanding their airbag-related business activities in this growing market. They will also work to expand sales to Japanese automotive parts manufacturers as well as to local prospective customers.