Toyoda Gosei is to transfer its entire ownership stake in Toyoda Gosei Meteor (TGM), its production subsidiary in Germany, to SCUR-Alpha 1123 as the company plans to change its name to AEQPH, an affiliate of a German business fund.
Toyoda Gosei has been reforming its earnings structure in each global region as an integral part of its efforts to achieve growth.
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However, its European business has continued to struggle. After considering remediation measures, it has decided to sell all its shares in TGM.
At the completion of this transaction, TGM and its subsidiary Meteor Sealing Systems will no longer be consolidated subsidiaries of Toyoda Gosei. The procedures for this transfer of ownership shares and management rights will be completed by the end of December, 2019.
The estimated loss to be incurred from the transfer is JPY21bn, which Toyoda Gosei will report as a loss on liquidation of business in its financial results for the fiscal year ending 31 March, 2020.
‘Strategy for growing markets and fields’ is one of the key pillars in Toyoda Gosei’s 2025 Business Plan, the company’s medium and long-term business plan and management resources are prioritised for allocation to growing markets and product fields.
