Japan’s Tokai Kogyo acquires rubber parts maker Kinugawa

Obu, Japan – Tokai Kogyo Holdings has acquired Kinugawa Rubber Industrial Holdings, bringing together two Japanese manufacturers of automotive rubber and plastic components.

The transaction involves the acquisition of all voting shares in Kinugawa from the Development Bank of Japan and Commons Share Holdings, according to a joint announcement dated 2 Nov.

The companies said the integration would strengthen their combined technological capabilities, supply networks and human resources amid 'intensifying competition in automotive components.'

Established in 1947, Tokai Kogyo manufactures automotive body seals, seat components and electronic parts, with operations spanning Japan and eight other countries and regions.

Kinugawa, founded in 1939, specialises in automotive body seals, hoses and anti-vibration rubber components. It has operations in seven countries and regions, including Japan.

The companies said competition was increasing among Japanese, European, American and Chinese automotive manufacturers, creating greater uncertainty for rubber & plastic parts suppliers.

The integration aims to generate "synergies" in technology, supply capabilities and human resources, while strengthening the group's management base.

The partners also said they intended to reinforce their international operations and expand business with existing and new customers.

For the financial year ended March 2026, Tokai Kogyo reported consolidated revenue of Yen87.6 billion (€505 million), while Kinugawa recorded sales of Yen65.3 billion.

The companies did not disclose the transaction value.