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Mitsubishi Corp becomes largest stakeholder in Toyo Tire

Mitsubishi Corp becomes largest stakeholder in Toyo Tire

Mitsubishi Corporation (MC) has increased its stakes in Toyo Tire & Rubber from 3.05% to 20% by purchasing an additional stake  in the tyre company for 50.9 billion yen.

The purchase of the stake has made MC the largest stake holder in the tyre company.

“Through this alliance, MC will expand its cooperative relationship with Toyo Tire, one that has been in the making over a half-century of transactions and joint venture business overseas, to a companywide partnership. Utilizing its comprehensive capabilities, MC will work closely with Toyo Tire to create a new business model, one that will contribute to increasing Toyo Tire’s corporate value through the provision of new services that meet the needs of the digital age and that are in line with revolutions in the mobility sector,” said MC in a statement.

To reinforce sale capabilities, the alliance will establish joint task force for each region (Japan, China, Europe, Middle East and Africa, Asia) to develop marketing channels and progressively strengthen sales, logistics, and operations. It will also enhance technical capabilities by promoinge external cooperation on areas such as “Research on next-generation materials”, “Advanced development of manufacturing technology”, and “Utilization of AI and IoT technologies” looking ahead on the future mobility society.

The capital increase will further strengthen the cooperative relationship between MC and Toyo Tire and will serve as funding for capital investment aimed at strengthening the company’s global business foundation and improving its medium- to long-term corporate value. The specific uses of this fund are as follows.

Specific use Amount

(Billions of Yen)

 
Increased production capacity at the U.S. tire plant 6  
Increased production capacity at the Malaysia tire plant 10  
Construction of new production base 33  
Expansion of truck and bus tire production facilities 7  
Total 56  

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