KIYOSU, Japan—Japanese automotive supplier Toyoda Gosei Co. Ltd is establishing a company in Itapetininga, Brazil, to make rubber and plastic components.
The Kiyosu-based firm is investing $45.6 million to set up the plant near Sao Paulo.
The company cited rising demand and the prospect for expanded auto production in South America.
Toyoda Gosei will own 94.8 percent of the company, which will be known as GDBR Industria e Comercio de Componentes Quiímicos e de Borracha Ltda.
The plant is scheduled to start production in November 2014. The operation will be Toyoda Gosei's first in South America.