Kiyosu, Japan – Toyoda Gosei Co is purchasing a majority stake in Hubei Rock Rubber and Seal Technology Co., Ltd (Hubei Rock) to strengthen its automotive parts business in China.
Hubei Rock, located in central China, is an independent supplier that provides weatherstrips mainly to Dongfeng Motor Corp., one of China’s “big three” automakers, said Toyoda Gosei in a 30 Oct statement.
The company also supplies to Dongfeng’s 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 expects to complete the €6.25-million acquisition of a 60% share in Hubei Rock, from its parent company Hubei Zhengao Automotive Accessories Co. Ltd, in December.
The Japanese automotive supplier said the purchase was made with the aim to ‘rapidly expand its business in the region’. The company will combine its technology and knowledge with Hubei Rock’s sales channels in order to further grow in the world’s largest automotive market.
With this partnership, Toyoda Gosei’s production network in China will expand to four locations: TG Star Light in northern China, Foshan TGR and Fu-Yue in southern China, and now Hubei Rock in Central China.
Toyoda Gosei stated that it considered China to be “a crucial market”, and that it would continue to strengthen its development and production networks there.