28 Juli 2023
Ashimori announces a significant advancement wherein Ashimori Industry Co., Ltd. and Toyoda Gosei Co., Ltd. have resolved to engage in discussions aimed at enhancing a capital and business alliance in the safety systems business. Subsequently, both companies have concluded memorandum of understanding ("MOU") to formalize these intentions.
Purpose of Strengthening MOU Capital and Business Alliance
The purpose of this strengthened capital and business alliance is to further solidify the relationship between ASHIMORI Industry Co., Ltd. and TOYODA Gosei Co., Ltd. as established in the capital and business alliance agreement signed on May 14, 2021.
Ashimori’s objective is to transform into a comprehensive safety systems supplier capable of offering complete safety solutions, including airbags, steering wheels, and seat belts. By enhancing and accelerating collaboration in development, design, sales, procurement, and production, the company aspires to maximize the interests of ASHIMORI Industry Co., Ltd. and TOYODA Gosei Co., Ltd. shareholders, employees, customers, and other stakeholders.
Details of Capital and Business Alliance
(1) Business alliance
ASHIMORI Industry Co., Ltd. and TOYODA Gosei Co., Ltd. have reached the following agreements to strengthen their business alliance. Specific conditions, implementation methods, and more will be discussed in the future.
1. Optimization of proposals to automakers by integrating Ashimori’s airbag and steering wheel sales as well as functions and making them more efficient
2. Integration of development and increased sales of airbags and seatbelts by complementing each other’s technology and know-how
3. Making development more efficient to respond to stricter safety regulations (laws and assessments), and to battery electric vehicles and autonomous driving
4. Unification of design specifications based on standardized parts
5. Optimized sourcing of parts
6. Investment control through effective utilization of bases, production facilities, assessment facilities, and more
(2) Capital alliance
TOYODA Gosei Co., Ltd. and Japan Wool Textile Co., Ltd., the largest shareholder of ASHIMORI Industry Co., Ltd., have reached a basic agreement for the transfer to TOYODA Gosei Co., Ltd. of 869,400 common shares in ASHIMORI Industry Co., Ltd. held by Japan Wool Textile Co., Ltd. (14.48% of common shares issued after deducting treasury stock). When the transfer of shares based on this agreement is completed, the number of common shares in ASHIMORI Industry Co., Ltd. held by TOYODA Gosei Co., Ltd. is scheduled to reach 1,703,500 (28.36% of common shares issued after deducting treasury stock).
Additionally, TOYODA Gosei Co., Ltd., is projected to become one of ASHIMORI's "other affiliated companies," while Japan Wool Textile Co., Ltd. is anticipated to cease being ASHIMORI Industry’s major shareholder.
Outline of Toyoda Gosei Co., Ltd.