Toyoda Gosei Co., Ltd., has announced that it has acquired a sizable stake in Hubei Rock Rubber and Seal Technology Co., Ltd. (“Hubei Rock”) as part of its drive to strengthen its auto parts business in China. China is the largest automotive market in the world and is growing at a fast pace.
Hubei Rock, which is based in central China, is an independent company that specializes in the production of weatherstrips to companies like Dongfeng Motor Corporation, which is one of the top three automotive manufacturers in China and its joint venture companies with overseas companies like Dongfeng Honda Automobile Co., Ltd. and Dongfeng Peugeot-Citroën Automobile Co., Ltd.
Toyoda Gosei, though its subsidiary in China, Toyoda Gosei China has plans to buy a 60 stake in Hubei Rock from its parent company, Hubei Zhengao Automotive Accessories Co., Ltd. The 800 million yen transaction is expected to be finalized by December 2018.
Toyoda Gosei brings to the partnership its expertise in technology, product design and production, as well as its positioning as a global supplier of rubber and plastic parts, while Hubei Rock is known for its track record and the sales channels which it has built up over many years of business with automakers in central China.
After the finalization of this partnership, Toyoda Gosei will be expanding its production network in China to 4 locations: TG Star Light in northern China, Foshan TGR and Fu-Yue in southern China, and now Hubei Rock in Central China. Toyoda Gosei considers China to be a very important market, and will continue to focus on developing its development and production networks in the country.
As an outcome of this transaction, the name of the company will be changed from Toyoda Gosei (Shanghai) Co., Ltd. to Toyoda Gosei (China) Investment Co., Ltd. In recognition of the fact that its nature will change from that of a management company to an investment company. The transaction will be finalized subject to regulatory approval from the Chinese authorities.
Hamid Moaref has always been fascinated by cars and the automotive industry. His family has a longstanding association with the industry and has been in the tire business for the past 35 years. Raised in Dubai, Hamid attended Capilano University in Vancouver where he graduated with a BBA in marketing before attending an intensive course in magazine publishing in 2005. He has been the publisher and chief editor of Tires & Parts magazine for the past ten years.
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