Toyo Seiko Establishes Cut Wire Plant for Automobile in Thailand

Toyo Seiko, Japanese major maker of cut wire for shot peening, starts production of cut wire in Thailand in October 2011. The production is initially scheduled at around 100 tonnes per month while raised to 200 tonnes in 2012. The new plant’s capital fund is 72 million bahts, 60% invested by Toyo Seiko, 20% by Daido Kogyo and the rest by a local company. The plant site is 4,676 square meters in Samut Prakan Prefecture. The operation will start with 15 employees.

Tokyo Seiko is an affiliate company of Miyazaki Seiko, Japanese major maker of cold finished steel bar. Toyo Seiko produces cut wire for shot peening process and sells the products mainly to automotive component and air plane industries. The firm exports the products to the U.S.A., Brazil, Europe, China, India and Southeast Asia. The export ratio is 40%.

Toyo Seiko carried out feasibility study in Thailand and decided establishment of a local company when the company became able to procure required materials locally and to reduce currency risk for increasing exports. The firm also expects for strong growth of local automobile industry.

In addition, the firm can take advantage of FTA (Free Trade Agreement) between Thailand, China and India when the firm exports cutting wire to these countries.