July 28, 2023
Toyoda Gosei Concludes MOU on Strengthening Capital and Business Alliance with Ashimori Industry
Kiyosu, Japan, July 28, 2023: Toyoda Gosei Co., Ltd. has concluded memorandums of understanding (MOUs) with Ashimori Industry Co., Ltd. and its largest shareholder, Japan Wool Textile Co., Ltd., respectively, for the strengthening of Toyoda Gosei’s capital and business alliance in safety systems with Ashimori Industry.
With the spread of battery electric vehicles and autonomous driving, safety systems such as airbags, seatbelts and steering wheels will need to evolve in terms of both function and performance. Demand will also continue to grow with the adoption of stricter safety regulations in all parts of the world.
To respond to these needs and contribute to safer and more reliable mobility in society, Toyoda Gosei and Ashimori Industry are accelerating their collaboration based on the capital and business alliance they concluded in May 2021. They will maximize the synergistic effect achieved in product development, design, sales, purchasing and production by leveraging their mutual business assets and know-how. Toyoda Gosei also aims to be a systems supplier that can comprehensively propose and supply safety systems.
Details of strengthened (MOU) capital and business alliance
(1) Business alliance
Toyoda Gosei and Ashimori Industry have reached this basic agreement to strengthen their business alliance in the following.
- (1)Integration of development and increased sales of airbags and seatbelts by complementing each other’s technology and know-how
- (2) Optimization of proposals to automakers by integrating their airbag and steering wheel sales functions and making them more efficient
- (3) Making development more efficient to respond to stricter safety regulations (laws and assessments), and to battery electric vehicles and autonomous driving
- (4) Unification of design specifications based on standardized parts
- (5) Optimized sourcing of parts
- (6) Mutual use of production locations, production facilities, assessment facilities and more
(2) Capital alliance
Toyoda Gosei and Japan Wool Textile have reached a basic agreement for the transfer to Toyoda Gosei of 869,400 common shares in Ashimori Industry held by Japan Wool Textile (14.48% of common shares issued after deducting treasury stock). When the transfer of shares based on this agreement is completed,* the number of common shares in Ashimori Industry held by Toyoda Gosei is scheduled to become 1,703,500 (28.36% of common shares issued after deducting treasury stock).
*This transfer of shares shall be done on the condition that the necessary clearances, permits, and approvals, based on relevant laws and regulations, are obtained.
Outline of Ashimori Industry
|Company name||Ashimori Industry Co., Ltd.|
|Location||11-61, 7-chome, Senrioka, Settsu, Osaka 566-0001, Japan|
|Date established||December 1935|
|Capital||JPY 8.388 billion (as of March 31, 2023)|
|Business activities||Manufacture and sales of automotive safety products, functional products, more|