Tokyo – Toyoda Gosei Co. Ltd is adding a second production plant in Brazil by taking a 30-percent stake in plastics automotive parts producer Pecval Indústria Ltda.
The investment in Pecval, which is a wholly-owned subsidiary of another Japanese firm, Shimuzu Industry Co. Ltd., is the latest in a series of expansions in Central and South America for Kiyosu-based Toyoda Gosei as it sees its Japanese customer base expand in the region.
In December, the company began production of rubber and plastics auto parts at its new GDBR Indústria e Comércio de Componentes Químicos e de Borracha Ltda. subsidiary in Itapetininga, Brazil – a $40-million investment at the time it was announced in 2013.
And in September 2014, it said was investing $67 million in a facility in Mexico, its fourth there, to make interior and exterior plastic parts such as radiator grills and console boxes.
Pecval, in Indaiatuba, Brazil, also makes interior and exterior parts, including radiator grilles and instrumental panel components, although it seems like it could be a smaller investment.
The terms were not disclosed, but Pecval has 165 employees and annual sales of about $27 million.
Toyoda Gosei said the investment is expected to close in October.