Toyota Spends 1.2 Billion Baht to Acquire Tasi

Toyota Boshuku Japan, Toyota's main automotive interior systems supplier, is spending 1.2 billion baht to purchase a local automotive seat producer, the Thai Automotive Seating and Interior Co (TASI).

Earlier, Toyota Boshuku held a stake of 50 percent in TASI. NHK Spring in Thailand with 35 percent and NHK Spring Japan are other stake holders. The deal has been made through Toyota Boshuku Asia Co., Toyota Boshuku's Thai operation. Toyota Boshuku Asia general manager Akihiko Shimanouchi said that Toyota Boshuku Japan and Toyota Boshuku Asia would hold 50 percent each in TASI after the acquisition.

Toyota Boshuku Asia's capital that would be raised to 210 million baht this month from 30 million would finance the investment. Operating cash flow and loans would also be the sources of 500 million baht funds.

Mr. Shimanouchi said that Toyota Boshuku Asia was mainly involved in research and development for automotive interior systems. Accordingly, it has revenue of 13.41 billion baht last year and is the group's second-largest revenue contributor in Asia.

Two hundred ninety-two (292) billion baht was Toyota Boshuku Japan’s recorded total revenue in 2006 from its global operations. From these figures, 13.5 percent or 40 billion baht was earned from Asian operations.

With registered capital of 250 million baht, TASI recorded revenue of 3.5 billion baht last year, which were mainly from sales to Toyota for its passenger cars.

Every year, Toyota Motor Thailand produces nearly 140,000 passenger cars.

Mr. Shimanouchi continued that the acquisition would mark the Toyota Boshuku Asia as the group's production base in Southeast Asia. Toyota, with total management control, could share its facilities and transfer technology from the parent company. It could also coordinate marketing initiatives.

He added that they envision a strong opportunity to grow in line with the automotive sector in Thailand. Furthermore, he said that all major car makers including Toyota have invested in large production in the country, which recently has made a big expansion. They also foresee an opportunity to take one step higher to take orders from other car makers aside from Toyota.

TBAS plans to invest more in research and development and production. Moreover, it plans to use TASI as a base to further export its products outside the country.

About Toyota

In 2006, Toyota, maker of quality Toyota cold air intake was engaged in several projects which were designed to solidify its foundations while continuing to grow.

Lexus, being the front product, launched its new flagship model - the LS - and the new global Camry went on sale. In Japan, a new Corolla range was introduced, highlighting the significance of this best-selling car.

As regards manufacturing, various new projects were initiated around the world. In May, manufacture of the Camry began in Guangzhou, China. Aside from this, the United States (Kentucky plant), which in October celebrated 20 years of production, began manufacturing the first Toyota hybrid vehicle to be built in North America - the Camry Hybrid. Furthermore, the Texas plant in November began producing the new Tundra truck, a key vehicle in Toyota’s North American lineup. And in Japan, the Toyota Motor Kyushu, Inc. began full-scale operations at its engine factory, while Toyota Motor Tohoku Co., Ltd. augmented its manufacturing capacity.