Toyo sells chemical business to Nitta

Japanese rubber products manufacturer Nitta has is to acquire the chemical and chemical and industrial products businesses of Toyo Tire and Rubber for 3.7 billion yen. The purchase does not include the now infamous seismic isolation rubber business.

Back in March Toyo Tire and Rubber said it was planning to sell its non-automotive operations and use the funds to strengthen its tyre business. Toyo Tire is expected to use the money from the sale to expand its tyre plant in Malaysia and invest in a US design centre set to open in 2018.

Toyo Tires’ subsidiary, Toyo Chemical Industrial Products, will set up a new company in which the business to be acquired by Nitta will be transferred. Sales for the unit were around $124.55 million in 2016.

Nitta president Motonobu Nitta said the chemical and industrial product business is being acquired for its railway cars, components for office automation equipment and gas metre diaphragms, which Nitta expects to experience the most growth. Nitta also sees potential in the industrial materials business that includes coated clothes, air springs, waterproof materials and construction materials, including urethane-based road materials.

Nitta currently produces general industrial products such as belts, hoses and tubes.