Toyoda Gosei investing €55m in US capacity expansion

Kiyosu, Japan - Toyoda Gosei (TG) is investing $60 million (€55 million) in its operations in the US to increase production capacity at two of its subsidiaries.

The spend, said TG, will help it to keep up with growing sales of interior and exterior automotive parts in the North American market.

The investments are also in line with the transition of vehicle makers into the production of “more diverse” vehicle types,the Japanese group said 26 Jan.

In line with this evolution in automotive industry, TG said it would establish “a network that can provide products with a wide range of variations.”

These will include different types of large painted products that are front and rear components of automobiles.

The project will involve: two factories, in Perryville and Indiana, belonging to TG Missouri Corp. (TGMO); and TG Kentucky's (TGKY) Lebanon plant.

TGMO will see a total investment of $21 million in the two sites, primarily on adding ‘energy-efficient’ moulding machines and 'latest-technology' assembly equipment.

The Perryville HQ plant will also see an area expansion, to 123,000m2 and the addition of collaborative robots and automated guided vehicles.

The investment will add capacity at the Perryville site, which produces interior as well as exterior safety systems, and the Indiana site which manufactures ‘interiors and exteriors’ products.

With a total investment of nearly $40 million, TGKY’s Lebanon unit will also see an area expansion to 66,000m2.

The unit, which manufactures ‘interiors and exteriors’ products as well as ‘functional components’, will also be equipped with new moulding machines, painting equipment, cobots and AGVs.

TG said it expects operations to start at the facility expansions by December 2025.

According to the group, North America is “a key market” in TG’s medium- to long-term business strategy.

“Going forward, the company will expand its development and production network to flexibly and rapidly meet customer needs in this essential market,” TG concluded.