November 5, 2013
Notice: Strengthening of Business in South America under Brake Business LineTokyo, Japan, November 5, 2013 - Nisshinbo Holdings, Inc. (“Nisshinbo”) hereby announces that it will move its consolidated subsidiary TMD Friction do Brazil S.A. (“TMD do Brazil”) to a new location and enhance its production capability. In doing so, Nisshinbo intends to expand upon its business in South America under its core break business line.
By virtue of acquiring TMD Friction Group S.A., one of the world’s premier friction materials manufacturers, in 2011, Nisshinbo achieved the distinction of being the manufacturer with the top share in the world’s automobile brake friction materials market. Brazil, which accounts for the fourth-largest number of automobiles sold in the world just behind China, Japan, and the United States, is the center of the South American market, which is anticipated to grow in the future. As such, Nisshinbo continues to position Brazil as a vital site of operations for consolidating the global leadership of its brake business line.
TMD do Brazil boasts the top share of the market for passenger car friction materials in Brazil. While its operations are currently based in the City of Indaiatuba (State of Sao Paulo), TMD do Brazil has recently decided to relocate those to operations to the outskirts of Salto, a city in the same state, where it will establish a framework for increased production. The decision to do so was largely due to the ongoing urbanization of the surrounding area and a lack of available sites needed to expand its plant facilities. Through these endeavors, in addition to improving its operational environment, TMC do Brazil will work towards further enhancing its quality and productivity and, in the process, strengthening its earnings capability.
The amount to be invested in these endeavors is 142 million real, or approx. 6.4 billion yen. Construction of TMC do Brazil’s new plant and the company’s relocation is slated to wrap up by the end of 2016. Through the above efforts, Nisshinbo intends to double its existing sales in South America by 2020.
[Reference] TMD do Brazil: Company Overview
(1) Name of Company: TMD Friction do Brazil S.A.
(2) Location: City of Indaiatuba, State of Sao Paulo, Federative Republic of Brazil
(3) Paid-In Capital: 26,684,000 real
(4) Year of Establishment: 1961 (Acquired by TMD Friction Group S.A. in 2001)
(5) Number of Employees: 600 (As of August 2013)
(6) Business Activities: Manufacture and sales of disk pads for passenger and two-wheeled vehicles, brake linings for passenger and commercial vehicles, etc.
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