Sojitz Acquires American Automotive Parts Manufacturer, jointly with Chinese Automotive Parts Manufacturer Minth Group Limited
Jul. 13, 2007
Sojitz Corporation has acquired the entire operations of American automotive exterior parts manufacturer Plastic Trim, LLC (Head office: Ohio, U.S.A.), through Plastic Trim International, Inc. (Head office: Ohio, U.S.A.), a joint venture established in the US between the company and Minth Group Limited, a Chinese automotive exterior parts manufacturer.
Plastic Trim International is capitalized at US$8.7 million (about 1,060 million yen), 44 percent of which is owned by Sojitz. Sojitz will send two corporate officers to Plastic Trim International and accelerate its business efforts in North America in the field of automotive parts.
Plastic Trim International owns two plants, in the states of Ohio and Michigan. The company also owns a sales base in Detroit and undertakes the manufacture and sale of automotive exterior parts, such as body side moldings and pillars, for automobile manufacturers in the US. Riding on its technical capabilities, including a joint material development conducted with a resin supplier followed by proposal-making to automobile manufacturers, Plastic Trim International will, as the sales base of Minth Group Limited in the US, undertake operations from a global point of view.
Sojitz positions the automobile-related business as one of its core business segments, and is working on strengthening its upstream business including that for automotive parts. Minth Group Limited is engaged in the manufacture and sale of automotive exterior parts for Japanese and Western automobile manufacturers in China. The products available from Minth Group Limited are highly valued among automobile manufacturers for their quality and price competitiveness.
Sojitz took a stake in Minth Group Limited in 2005, and has been making efforts to expand its automotive parts business overseas through the strategic business partnership. The acquisition of the entire operations of Plastic Trim LLC will be the fist joint operation with Minth Group Limited. Sojitz continues to strengthen ties with Minth Group Limited, and will focus its efforts on automotive parts businesses overseas.
Outline of Plastic Trim International, Inc.
|Capital||US$8.7 million (Sojitz: 44%, Minth Group: 48%)|
|Production base||2 locations (Beavercreek, East Tawas)|
|Sales base||1 location (Detroit)|
|No. of employees||About 400|