OSAKA, Japan (Jan. 27, 2012)—Toyo Tire & Rubber Co. Ltd. and Guangdong TGPM Automotive Industry Group Co. Ltd. are forming a joint venture in China to make and distribute polyurethane seat cushions for cars and other vehicles.
The company will be called Toyo TGPM Automotive Parts Foshan Co. Ltd. and be based in Foshan City in Guangdong Province, Toyo said. The venture will be capitalized at about $7.85 million, and toyo will own a 60 percent share, and TGPM 40 percent.
Toyo said the venture should be concluded by March, with production beginning the following month. By 2017 the factory will employ 50, making flexible seat cushions for passenger cars and motorcycles and generating annual sales of about $17 million.
Japan's Toyo said it has developed advanced proprietary urethane technology that yields a lighter- weight material that provides improved seating comfort.
TGPM is building its sales network with automobile makers, through manufacturing and distribution of automotive body sealing, and developing car dealerships in the Huanan Region centered around Foshan City.
For Toyo, the venture fulfills its goal of entering the market for high value-added PU seat cushions in China, while TGPM follows its strategy of expanding its business with automotive manufacturers, Toyo said.