Sector News

Toyo to divest chemical products businesses

August 24, 2017
Chemical Value Chain

Toyo Tire & Rubber Co. Ltd. has agreed to divest major portions of its chemical industrial products business unit to fellow Japanese companies Nitta Corp. and Sekisui Chemical Co. Ltd. for undisclosed sums.

Among the businesses being divested are components for railway cars, industrial rubber products, hoses, waterproof materials, rigid polyurethane products, etc.

Toyo stressed that the seismic isolation rubber business — which was involved in a series of fraudulent business transactions over the past several years that resulted in tens of millions of dollars in losses for Toyo — is not part of the sale.

Neither Toyo nor Nitta disclosed financial details of the deals, which involve the creation of a new stock companies involving Toyo Chemical & Industrial Products Co. Ltd. and Soflan Wiz Co. Ltd., Toyo subsidiaries.

The Nitta deal involves six factories — three in Japan, two in China and one in Thailand.

Toyo did not disclose the scale of sales the businesses being divested represent.

Toyo said the divestitures are related to a business review process started earlier this year. Toyo said it evaluated and reassessed each business from various perspectives, including market growth potential and business continuity, and determined the best course of action to enhance the value of each business.

That led to Toyo’s concluding it would be best for the businesses now targeted for divestment to “pursue future opportunities under the ownership of a well-established company that possesses profound knowledge of a similar business segment, and has the necessary infrastructure to promote the business.”

By Bruce Davis

Source: Tire Business

Related News

September 18, 2020

British company Hydrachem launches Cert. – a household cleaner that destroys COVID-19 in just 60 seconds

Chemical Value Chain

A British company is today launching a household cleaner which destroys the SARS-CoV-2 virus – which causes COVID-19 – in just 60 seconds. Cert. is manufactured by Hydrachem, which has […]

September 18, 2020

European Commission raises EU’s GHG emissions reduction target to at least 55% by 2030

Chemical Value Chain

The European Commission presented today its 2030 climate target plan, in which it sets out a program to reduce EU greenhouse gas (GHG) emissions by at least 55% by 2030, […]

September 16, 2020

Dow to sell trio of US Gulf Coast tank terminals to Vopak JV for $620 million

Chemical Value Chain

Dow has agreed to sell three of its chemical storage terminals on the US Gulf Coast for $620 million to a joint venture (JV) between Vopak (Rotterdam, Netherlands) and investment […]