Toyobo and MC Agree to Establish New Joint Venture in Functional Materials
Mar 24, 2022
Toyobo Co., Ltd.
-New company will combine Toyobo’s technological expertise and MC’s collective capabilities to capture growth in global markets-
Toyobo Co., Ltd. (Toyobo) and Mitsubishi Corporation (MC) are pleased to announce our agreement to establish a new joint venture company1 that will specialize in the planning, development, manufacturing and sales of functional materials. The terms of our agreement call for the new company to commence operations in January 2023 or sometime thereabouts.
Background and Aims of this Joint Venture
Business environments have been changing quite dramatically in recent years, as evidenced by global moves to decarbonize and expedite the development of new technologies. These changes are driving up demand for functional materials and resulting in a significant restructuring of the related industries, and both Toyobo and MC are committed to capturing opportunities that may arise. Over the last two years, we have been pursing strategic, cross-industry collaborations to ensure the sustainable growth and development of our operations, and our agreement signed today, on 24th March 2022, represents our latest venture together. Toyobo and MC share similar corporate values. We are both dedicated to addressing challenges faced by modern communities and helping to realize a sustainable society, and we are pleased that working together in functional materials will afford us another opportunity to do so.
Our new joint venture company shall inherit Toyobo’s functional materials business2, and by combining our companies’ respective strengths, it shall endeavor to achieve two aims. The first of those aims is to grow our presence in global markets, and the second is to provide customers with solutions that meet the evolving needs of the industry, which are growing increasingly diverse and sophisticated by the day. Together, we are confident that we can achieve both of these aims, as MC’s broad industry know-how and network promises to be the perfect complement to Toyobo’s technological expertise.
Our New Joint Venture
|(1) Name||To be determined|
|(2) Address||Osaka Umeda Twin Towers South, 1- 13 -1 Umeda, Kita-ku, Osaka-city, Osaka|
|(3) Representatives||To be determined (planning to nominate one representative each from Toyobo and MC)|
|(4) Operations||Planning, development, manufacturing and sales of functional-material products|
|(5) Capital||To be determined|
|(6) Launch Date3||January 2023 (tentative)|
|(7) Investment Ratio||Toyobo 51%, MC 49%|
(Laying of Robust Management Foundation)
By combining Toyobo’s business foundations with MC’s management expertise and functions, our new joint venture company shall strive to offer high value-added solutions to its customers. Immediately following its establishment, work shall commence to lay down a firm-yet-flexible management foundation that is capable of adapting swiftly to the dynamically changing business environment.
(Creation of Business Opportunities in New Growth Regions and Fields)
Another of our objectives in establishing this new company is to leverage MC’s network to facilitate the global expansion of Toyobo’s materials and technologies. Furthermore, by marrying work to meet that objective with efforts dedicated to decarbonization and the achievement of the UN’s sustainable development goals, our new company shall pave the way forward for future collaborations between Toyobo and MC. We look forward to facilitating our construction of new business models that extend beyond functional materials, discussions on global alliances, and other ways to ensure the sustainable growth and development of our operations.
[Reference] CASE4 Developments in the Automotive Industry & Eco-friendly Product Categories
|(1) Company Name||Toyobo Co., Ltd.|
|(2) Address||2-2-8 Dojima Hama 2-chome, Kita-ku, Osaka|
|(3) Representatives||Ikuo Takeuchi, President & CEO|
|(4) Business Description||Films and Functional Materials, Mobility, Lifestyle and Environment, Life Science|
|(5) Date of Establishment||June 1914|
|(1) Company Name||Mitsubishi Corporation|
|(2) Address||2-3-1 Marunouchi, Chiyoda-ku, Tokyo|
|(3) Representatives||Takehiko Kakiuchi, President and CEO|
|(4) Business Description||Wide range of businesses spanning multiple industries and overseen by 10 Business Groups: Natural Gas, Industrial Materials, Petroleum & Chemicals solution, Mineral Resources, Industrial Infrastructure, Automotive & Mobility, Food Industry, Consumer Industry, Power Solution, and Urban Development.|
|(5) Date of Establishment||April 1950|
|*1||MC will invest in the new company following its acquisition of certain Toyobo operations through an absorption-type demerger.|
|*2||Business related to planning, development, manufacturing and sales of functional materials in Japan and overseas (Business related to Polymerization Development, VYLON® and HARDLEN®, Photo Functional Materials, Fine Chemicals, Engineering Plastics, Water Treatment Membranes, Environment Solution Devices, Activated Carbon Products, Activated Carbon Filters, Spunbond Nonwoven Fabrics, Lifestyle Materials, High-Performance Fibers), and ancillary operations will be inherited by the new joint venture company.|
|*3||Procedures and schedules may change according to the discussions and considerations done between the related parties.|
|*4||Next-generation technology for automobiles: Connected, Autonomous, Shared & Services and Electric.|
For more information, contact
Public Relations Group, Corporate Communication Department, Toyobo Co., Ltd.
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