Kiyosu, Japan - Toyoda Gosei is selling its German production subsidiary Toyoda Gosei Meteor (TGM) to AEQPH GmbH, the Japanese group announced 22 Nov.
The sale to the German business fund-owned company is part of a global restructuring programme at Toyoda Gosei, with the aim of improving earnings-growth.
Despite previous restructuring efforts, Toyoda Gosei said the German business "continued to struggle”, prompting the sale “after considering remediation measures.”
To be completed by the yearend, the deal will transfer ownership of TGM and its US subsidiary Meteor Sealing Systems to Munich-based AEQPH, which changed name from Scur-Alpha 1123 on 22 Nov.
Based in Bockenem, Germany, TGM was founded in April 2014 and produces weatherstrips. As of March 2019, the business employed 1,360 people.
TGM was founded in parallel with the acquisition of Dover, Ohio-headquartered Meteor Sealing Systems in April 2014. The US unit manufactures weatherstrips and employs 315 people.
The estimated loss to be incurred from the transfer is JPY21 billion (€175 million), said Toyoda Gosei
The group will report this as a loss on liquidation of business in its financial results for the fiscal year ending 31 March 2020.