Nexen Tire has held an inauguration ceremony for its subsidiary Nexen Tire Japan Inc. – a joint venture with Toyota Tsusho Corporation.
The ceremony took place in Tokyo, Japan with the CEO of Nexen Tire, Travis Kang, and Ichiro Kashitani, Automotive Division Chief Officer of Toyota Tsusho Corp.
The two companies’ discussion about synergy-deriving cooperation began in June 2015, which progressed into signing of the shareholders’ agreement to establish a joint venture, Nexen Tire Japan Inc.
Toyota Tsusho Corporation, the trading arm of Japan’s Toyota Group, mainly exports automobiles and automotive parts, but is also actively involved in a range of businesses including metals, chemicals and electronics. Established in 1948, Toyota Tsusho Corporation is one of the Top 5 Japanese trading companies, earning JPY 67 billion ($US591 million) in 2015 with six operating divisions and over 150 offices as well as 900 subsidiaries and affiliates worldwide.
With Nexen Tire holding 51% and Toyota Tsusho holding the remaining 49% of the shares, Nexen Tire Japan Inc. begins its sales of Nexen Tire’s products in January. With local management within the organisation, Nexen Tire Japan says it will customise its business operation to strengthen its RE business in the market and also reinforce OE supply to Japanese automobile manufacturers.
Nexen says it aims to expand its business, bolster Nexen Tire’s brand awareness and boost its sales within Japanese market.