Mitsubishi Corporation (MC) has approved the purchase of an additional stake in TOYO TIRE & RUBBER CO., LTD. (TOYO TIRE) for 50.9 billion yen via subscription to a private placement of shares and has entered into a capital alliance agreement with TOYO TIRE. The purchase of these additional shares will increase MC’s shareholding in TOYO TIRE from 3.05% to 20.00%.
The mobility sector is undergoing a once in a century transformation, including the electrification of automobiles and the onset of automated driving technology and, as the so-called CASE trends advance, major shifts in industrial structures are also becoming more visible. This also has implications for the tyre industry, in which the nature of the services demanded and the types of roles executed are changing, not just on the manufacturing side, including the development of fuel efficient or low environmental impact products that support the shift to electric vehicles and the improvement of production efficiency, but on the sales and distribution side as well.
Up until now, TOYO TIRE has utilised its individual technology to build a unique product portfolio, including large diameter tyres for SUVs and other large vehicles.
On the other hand, MC has a wide array of touching points with various industries, and has accumulated know hows while building a global network through a wide range of businesses.
Through this alliance, MC will expand its cooperative relationship with TOYO TIRE, one that has been in the making over a half-century of transactions and joint venture business overseas, to a companywide partnership. Utilising its comprehensive capabilities, MC will work closely with TOYO TIRE to create a new business model, one that will contribute to increasing TOYO TIRE’s corporate value through the provision of new services that meet the needs of the digital age and that are in line with revolutions in the mobility sector.
