Several Japanese suppliers of parts and components are planning to establish production facilities in China in order to supply the new Toyota Motors joint venture there, Nikkei said. Takashimaya Nippatsu Kogyo, Araco and Toyoda Boshoku are negotiating with China FAW Group over the establishment of a joint venture. It will turn out ceiling panels, door interiors and seats for Toyota's local production bases, including a new plant in Tianjin.
Futaba Industrial will construct a new factory in Tianjin through its Chinese joint venture, Tianjin Shuang Shye Mechanical Industrial, at a total investment of US$9m, with a view to launching it in 2004. The new plant will turn out mufflers and other parts. Sango, a major pressed parts maker, will build a plant in Tianjin and start production in 2004. Meanwhile, Aisin AW plans to begin turning out automatic transmissions in China in 2005. It will initially produce 30,000 to 50,000 automatic transmissions a year for the Crown model, which Toyota plans to manufacture in China from 2005.