Toyoda Gosei Co., Ltd., through its regional headquarters in China, purchased a majority stake in Hubei Rock Rubber and Seal Technology Co., Ltd. to strengthen its automotive parts business in China, the world’s largest automobile market.
Hubei Rock, located in central China, is an independent supplier that provides weatherstrips mainly to Dongfeng Motor Corporation, one of China’s “Big Three” automakers, and its joint venture companies with Japanese and other foreign manufacturers, including Dongfeng Honda Automobile Co., Ltd. and Dongfeng Peugeot-Citroën Automobile Co., Ltd.
Toyoda Gosei China plans to purchase 60% shares from Hubei Rock’s parent company, Hubei Zhengao Automotive Accessories Co., Ltd., for approximately JPY800 million ($7.12 million) in December 2018.
Toyoda Gosei’s decision to invest in Hubei Rock was made with the aim of rapidly expanding its business in the region by merging the Toyoda Gosei Group’s technology and knowledge in product design and production, cultivated as a global supplier of rubber and plastic parts, with Hubei Rock’s track record and sales channels built up over many years of business with automakers in central China.
With this partnership, Toyoda Gosei’s production network in China will expand to 4 locations: TG Star Light in northern China, Foshan TGR and Fu-Yue in southern China, and now Hubei Rock in Central China. Toyoda Gosei considers China to be a crucial market, and will continue to strengthen its development and production networks there.