Toyota Boshoku Corporation
Kawashima Selkon Textiles Co., Ltd.
Toyota Tsusho Corporation
Toyota Boshoku Corporation (hereinafter “Toyota Boshoku”), Kawashima Selkon Textiles Co., Ltd. (hereinafter “Kawashima Selkon Textiles”) and Toyota Tsusho Corporation (hereinafter “Toyota Tsusho”) will enter into discussions to consider merger of their businesses with the objective of becoming the world’s leading company of fabrics for automobiles, trains, aircrafts etc. (hereinafter “automotive fabrics business”).
(1) Objective of the Business Merger
The automotive fabrics industry is anticipated to become increasingly competitive due to the effects of further globalization and the push towards improved functionality and design.
In response to these market conditions, the companies have decided to begin consideration of a merger of their businesses so as to strengthen their global expansion efforts and increase their competitiveness, utilizing respective advantages, with the aim of
1) strengthening the sales, development and production bases by cooperating to achieve synergic effects across areas of technological expertise, customer base, business field and geographical region, and achieving improved efficiency through integrated process of operation, and
2) establishing fabric development and production system capable of creating both cutting edge designs and highly functional fabrics that not only reflect the particular requirements of the whole car interior spaces but which also take into account environmental and health concerns.
(2) Method of the Business Merger
The automotive fabric businesses of Toyota Boshoku, Kawashima Selkon Textiles and Toyota Tsusho are to be split out, and all the three businesses are to be integrated.
The specific details of the arrangement will be decided amongst the three companies in the upcoming future.
(3) Schedule for the Business Merger
|Execution of Memorandum of Understanding:||Mid June 2009 (scheduled)|
|Merger of the relevant businesses:||April 2010 (scheduled)|
The specific schedule is to be decided amongst the three companies in the upcoming future.