Toyoda Gosei to dissolve China subsidiary amid industry shifts

Toyoda Gosei Co., Ltd. announced its decision to dissolve its wholly-owned Chinese subsidiary, Toyoda Gosei Star Light (Tianjin) Auto Parts Co., Ltd. (TGSL), by the end of 2026. This move is part of the company's broader structural reforms aimed at sustainable growth amidst significant changes in the automotive industry. TGSL, established in January 1994, specialized in manufacturing and selling weatherstrip products with a capital of $34.5 million.

The dissolution is attributed to a challenging business environment in China, including reduced production by Japanese car manufacturers, which led Toyoda Gosei to conclude that TGSL would not achieve future business growth. The company aims to enhance management efficiency through this strategic dissolution.

For the fiscal year ended March 31, 2025, TGSL reported net assets of (894) million yen, total assets of 2,565 million yen, and net sales of 5,905 million yen. The company anticipates a minimal impact on consolidated and non-consolidated financial results for the fiscal year ending March 31, 2026.