OREANDA-NEWS. November 30, 2012. Toyota Tsusho Corporation (headquarters: Nagoya City, Aichi Prefecture; president: Jun Karube; hereafter "Toyota Tsusho") has established Toyota Tsusho Processing de Mexico S.A. de C.V. (hereafter: TTPM) in central southern Mexico as a new steel processing center. Toyota Tsusho has also increased the capital of Techno Steel Processing de Mexico S.A. de C.V. (hereafter: TSP), a currently operating steel processing center in northern Mexico, to boost the center's processing capacity. The investments will accelerate the expansion of the Toyota Tsusho's steel processing business across Mexico and facilitate the establishment of a unified serviceЎЄfrom materials procurement to product supplyЎЄin a country where entities are increasingly turning to local procurement for their material needs.

1. Background to new company establishment and TSP capital increase     Recognizing Mexico as a strategically important market, Toyota Tsusho has conducted market research to support the expansion of its automobile and infrastructure businesses, which offer future growth potential. Toyota Tsusho established TTPM in the central southern state of San Luis Potosi to begin the processing and sale of steel plates with a focus on stainless steel products. TTPM will not only serve the local automobile industry, but will also develop a support structure for  steel procurement to meet growing demand for local procurement in a wide range of industries. At TSP, a steel processing center located in the northern state of Nuevo Leon, Toyota Tsusho's capital increase will bolster TSP's mainstay electrical steel plate business and enable the company to expand from steel processing into secondary product manufacturing and sales. With expanded capacity, TSP will not only sell its products domestically, but supply electrical steel to major North American transformer manufacturers. ЎЎ

2. Future business expansion    

As the steel processing industry in Mexico is expected to continue rapidly expanding, Toyota Tsusho plans to further expand its steel processing business by leveraging its global network and strengths in the automobile industry. The future growth of the business will support the local procurement needs of manufacturers starting up production in Mexico, while helping to establish a presence for Toyota Tsusho.