Japan-based steel pipe manufacturer Maruichi Steel Tube, Ltd has announced that, together with Toyota Tsusho Group, the trading unit of the Japanese car producer Toyota Group, it has decided to jointly establish a subsidiary in the suburbs of Manila, the Philippines, for the manufacture of steel tubing to be used for motorcycle and automotive parts.
Accordingly, the two companies plan to establish a subsidiary for manufacturing and sales of steel tubing for motorcycle and automotive parts manufacturers with an investment of $14 million. The commissioning of the new plant is expected in the spring of 2019.
According to Maruichi Steel Tube, as the demand for steel tubing from the Japanese motorcycle and automotive-related companies currently operating in the Philippines is expected to grow in the future, the two companies have decided to jointly establish a local corporation and construct a steel tube making factory in the suburbs of Manila, where Japanese motorcycle and automotive industries are concentrated.