Toyoda Gosei to Restructure Its European Operations: Shares in German Production Subsidiary to be Transferred to Business Fund
November 22, 2019
Kiyosu, Japan, November 22, 2019: Toyoda Gosei Co., Ltd. will transfer its entire ownership stake in Toyoda Gosei Meteor (TGM), its production subsidiary in Germany, to SCUR-Alpha 1123 GmbH (in the following, “AEQPH,” as the company plans to change its name to AEQPH GmbH), an affiliate of a German business fund.
Toyoda Gosei has been reforming its earnings structure in each global region as an integral part of its efforts to achieve sustainable growth. However, its European business has continued to struggle. After considering remediation measures, it has decided to sell all of its shares in TGM. At the completion of this transaction, TGM and its subsidiary Meteor Sealing Systems will no longer be consolidated subsidiaries of Toyoda Gosei Co., Ltd. The procedures for this transfer of ownership shares and management rights will be completed by the end of December 2019.
The estimated loss to be incurred from the transfer is JPY21 billion, which Toyoda Gosei will report as a loss on liquidation of business in its financial results for the fiscal year ending March 31, 2020. Please see the “Notice Concerning the Revision of Financial Forecasts” released by the company today for a forecast of consolidated earnings for the current fiscal year.
“Strategy for growing markets and fields” is one of the key pillars in Toyoda Gosei’s 2025 Business Plan, the company’s medium and long-term business plan, and management resources are prioritized for allocation to growing markets and product fields. The company will continue to respond swiftly and flexibly to the accelerating changes in the business environment with the aim of achieving sustainable growth into the future.
Outline of companies to be transferred
|1. Company name||Toyoda Gosei Meteor GmbH||Meteor Sealing Systems, LLC|
|2. Location||Bockenem, Germany||Dover, Ohio, USA|
|3. Founded||April 2014||April 2014 (Acquisition of resources)|
|4. Capital||EUR25,000||USD8 million|
|5. Shareholders||Toyoda Gosei Co., Ltd. 100%||Toyoda Gosei Meteor GmbH 100%|
|6. Representative||President Katsumi Saito||President Katsumi Saito|
|7. No. of employees||1,359 (as of March 31, 2019)||315 (as of March 31, 2019)|