Toyoda Gosei and Ashimori Industry Conclude a Capital and Business Alliance
Kiyosu, Japan, May 14, 2021: Toyoda Gosei Co., Ltd. and Ashimori Industry Co., Ltd. have agreed to establish a capital and business alliance for the safety system business. The business environment in the automotive industry is undergoing huge changes, including technical innovations in the new fields referred to as CASE and MaaS. The environment for automotive products is also changing, and companies need to keep up with these changes while contributing to the development of more abundant societies through the supply of clean and safe parts. To meet these challenges, Toyoda Gosei and Ashimori Industry will leverage their mutual business assets and know-how in contributing to improved automobile safety performance by developmental ability and strengthening product competitiveness.
1. Details of capital and business alliance
(1) Business alliance
Toyoda Gosei and Ashimori Industry will leverage their respective business assets and know-how, build a cooperative framework in areas including technical development, production, and purchasing, and improved competitiveness from the effects of synergy.
- (1) Collaboration in the fields of technology and development for automotive safety part systems and components
- (2) Strengthening of production and quality control systems by mutual use of the two companies’ production sites and sharing their manufacturing expertise
- (3) Optimization of the supply chain by building a cooperative framework in purchasing and other areas
(2) Capital alliance
Toyoda Gosei plans to acquire 834,100 common shares (13.89% of outstanding common shares after deduction of treasury shares) in Ashimori Industry currently held by the Japan Wool Textile Co., Ltd. through after-hours trading on ToSTNeT-1 at the closing price on May 14.
2. Outline of Ashimori Industry
|Company name||Ashimori Industry Co., Ltd.|
|Location||11-61, 7-chome, Senrioka, Settsu, Osaka 566-0001, Japan|
|Business activities||Manufacture and sales of firefighting hose, automotive safety products, functional products, more|
|Capital||JPY 8.388 billion (as of March 31, 2021)|
|Date established||December 27, 1935|