2009-08-27
Notification of Establishment of a New Subsidiary
Tsubakimoto Chain (Headquarters: Osaka, Japan. President and Representative Director: Isamu Osa) will establish a subsidiary in Korea to expand its timing chain drive system*1 business for automotive engines.
Reason for establishment
Tsubakimoto Chain, a systems supplier of timing chain drive systems for automotive engines, supplies its systems to domestic and foreign automobile manufacturers from five production centers located in the US, the UK, Japan, Thailand, and China. In conjunction with the order received from the Hyundai Motor Company for a new engine project, Tsubakimoto Chain will establish a manufacturing and supply center in Korea to ensure steady supply to Hyundai, and expand its global share.
The new subsidiary will also serve as a global parts procurement base.
*1 Timing chain drive systems, a mechanism pivotal to engine performance, transmit the rotation of the crankshaft to the camshafts to maintain intake and exhaust valve timing. The system is comprised of timing chains, tensioners, levers, guides, and sprockets.
Overview of the subsidiary
- Firm name:
Tsubakimoto Automotive Korea Co., Ltd. - Representative:
Representative Director: Morikazu Asada (Automotive Parts Division, Chief Secretary of Korea Project) - Location:
Masan Free Trade Zone, Korea - Date of establishment:
September 1, 2009 (tentative) - Principal business:
Manufacture and sales of timing chain drive systems for automotive engines - Major customers:
Hyundai Motor Company - Accounting period:
December - Number of employees:
5 (tentative) - Capital:
2.86 billion won - Investment ratio:
100% subsidiary of Tsubakimoto Chain
Impact on business results
The establishment of this subsidiary will have an insignificant impact on this term's consolidated results.