Toyota Tsusho Corporation (hereinafter referred to as "Toyota Tsusho";
Headquarters: Nagoya City; President: Junzo Shimizu) acquired all
shares of Wako Bussan Co., Ltd., (hereinafter referred to as "Wako
Bussan"; Headquarters: Tokyo; President: Yoshiaki Shinagawa), a trading
company specializing in rare earth products, to secure a stable supply
of rare earth resources. A decision has been made to change the company
name to "Toyotsu Rare Earth Corporation." Furthermore, a Metal &
Mineral Resources Department Metal was established on December 1 to
conduct substantial activities aimed at securing a stable supply of
rare metals, including rare earth elements.
1. Background and purpose for acquisition of shares
The demand for rare earth elements is increasing significantly due to
the popularization of hybrid vehicles and mobile phones in recent
years. Because China controls 90% of total rare earth supply worldwide,
supply is limited and securing a source other than China is a matter of
urgency.
Toyota Tsusho plans to set up a stable supply of rare earth products to
its trading partners, including those in non-automotive fields,
following the acquisition of all shares of Wako Bussan. Wako Bussan has
over 50 years of experience and a record of performance as a trading
company specializing in rare earth products, and the acquisition grants
Toyota Tsusho access to Wako Bussan?s commercial rights and sales
channels for rare earth products produced in India.
2. Outline of rare earth operations at Toyota Tsusho
Toyota Tsusho has been undertaking activities to secure a source for
the supply of rare earth products from locations other than China by
investigating potential sites around the world through broad
collaborative efforts with the National Institute of Advanced
Industrial Science and Technology (AIST), and the Japan Oil, Gas and
Metals National Corporation (JOGMEC). As a result, a supply of rare
earth products produced in India is expected to become available from
the second half of the year 2010. Furthermore, in Vietnam, a memorandum
pertaining to the development of rare earth mineral mines has been
signed with a local government-operated mining company with mining
rights in the country, with a supply expected to become available from
2011.
Engineers will also be dispatched from Japan for development in the
respective countries, to further the development of mineral processing,
separation, and refining technologies from Japan and to train of
personnel in these areas.
Toyota Tsusho furthermore established a new Metal Resources Department
within the Metals Division, in order to secure a stable and rapid
supply of not only rare earth elements, but also rare metals that are
essential to hi-tech industries, comprising primarily the automotive
industry, and to strengthen information collection and the promotion of
commercialization.
