Toyota Tsusho Establishes Joint-Venture Recycling Company in China

On August 8, 2005, Toyota Tsusho announced the establishment of the recycling company Guangzhou Guangqi Toyotsu Resource Management Co. in Guangzhou, China. Toyota Tsusho Corp. (a member of the Toyota Group) and Guangzhou Guangqi Industrial Development Co. established the firm as a joint venture in May 2005. The plant' groundbreaking ceremony was held on the day of this announcement, and the plant is scheduled to start operations in January 2006.

Toyota Motor Corporation already has auto production facilities in Guangzhou, and this recycling joint venture was established to deal primarily in scrap iron and waste paper produced by automobile and automotive parts manufacturers in the city's Nansha Development District. It will also handle other waste materials and implement an integrated recycling business, with an aim of creating recycling-oriented, environment-friendly business operations.

Toyota Tsusho will provide know-how for the processing of scrap iron and waste paper. Guangzhou Guangqi will take charge of publicity and communications, utilizing its networks in China. The company is capitalized at the equivalent of U.S.$3.05 million, 60 percent provided by Toyota Tsusho and 40 percent by Guangzhou Guangqi. The sales target is 430 million yen (about U.S.$3.8 million) in the first year (2006) and 1.6 billion yen (about U.S.$14 million) in 2008.

Toyota Tsusho first established a directly-controlled recycling company in the state of Kentucky in May 2000 to deal in scrap iron from factories there. Since then it has aggressively expanded similar operations globally, and eight plants are currently operating worldwide.

http://www.toyota-tsusho.com/press/en/20050808_2pasttoyotsu.cfm

Posted: 2005/12/15 10:47:51 AM
Japanese version