HYOGO, Japan—Toyo Tire & Rubber Co. Ltd. is set to launch a major reorganization and management reshuffle in 2019, which will coincide with the previously announced change in the corporate name to Toyo Tire Corp.
The reorganization will focus on the reinforcement of the headquarters function and strengthen the company's technological capabilities.
It also coincides with Toyo's recent decision to establish a "strategic partnership" with Japanese conglomerate Mitsubishi Corp., one Toyo said will enhance its global distribution assets, help it compete more effectively in the evolving mobility sector and fund capacity expansions.
The new organization layout will include a corporate headquarters and a business HQ, an R&D HQ, a production HQ as well as a sales HQ, Toyo said.
Additionally, the company's "fundamental production engineering headquarters" will be dissolved and the production engineering division will be transferred to the new production HQ.
As part of the revamp, Toyo will dissolve its "business strategy division" and create a new supply-chain management (SCM) division within its business headquarters.
In terms of R&D, the company will dissolve its "R&D Division No. 1" and "R&D Division No. 2" and replace them with three divisions of advanced process development, technology development and product development.
Also, a production method development department will be established under the advanced process development division.
The reorganization also encompasses dozens of executive promotions and appointments, mostly affecting executives within the corporate headquarters and R&D staffs.
The only change involving Toyo North America staff affects Kiyohito Hasumi, senior vice president, Toyo Tire Holdings of Americas Inc., who will take on the additional responsibility of division general manager, Americas Business Development.
Toyo announced its name change in February, saying at that time it was to reflect the company's increasing emphasis on "mobility" at its core field of business.
The name change also reflects Toyo's decision to divest major portions of its chemical industrial products business unit, operations representing more than $235 million in annual sales.
These divestitures and other moves Toyo has made in the couple of years has increased the company's tire-centric sales to nearly 87 percent of total revenue from about 79 percent traditionally.