June 29, 1998

TOYOTA MOTOR CORPORATION starts an afforestation project in alliance with Mitsui & Co., Ltd. and Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd.

TOYOTA MOTOR CORPORATION has decided to start an afforestation project in alliance with Mitsui & Co., Ltd. and Nippon Paper Industries Co., Ltd. For a start, both TOYOTA MOTOR CORPORATION and Mitsui & Co., Ltd. are supposed to set a joint venture, Australian Afforestation Pty.Ltd, as of the 3rd of August in 1998 which will be engaged in an afforestation business for pulpwood production at Melbourne, Victoria, Australia.
TOYOTA MOTOR CORPORATION set a special group within the Business Development Division in January this year which has been discussing the implementation of agricultural biotechnology and an environmental tree-planting project for the 21st century when environmental problem and food shortage will assume to be serious.
TOYOTA MOTOR CORPORATION is planning to apply the results of research on tree it has devoted to through joint research with Nippon Paper Industries which has achieved satisfactory results in the area of afforestation all over the world and biotechnology research, and develop trees which are excellent in high growing performance and resistance to drying and finally plant these trees through a joint venture.
In the amidst of an advocacy for preservation of the environment on the global level, as the curtailment of greenhouse gasemissions which are responsible for a greenhouse effect was included in an agreement reached by Kyoto Conference on global warming, the new joint venture is expected to make a contribution for improvement of the environment of the earth by fixing carbon dioxide.
The new joint venture will plant 500 hectares of eucalyptus a year and start to lumberthose eucalyptuses on the 11th year which will have been aggregated 5,000 hectares.
TOYOTA MOTOR CORPORATION will sell those trees to Nippon Paper Industries via a joint afforestation business undertook by Mitsui & Co., Ltd. and Nippon Paper Industries which has already expanded an afforestation project for pulpwood production at the place.
The reason why this new joint venture was realized in spite of the fact that three companies belong to different types of enterprises is that each companys intention has come into line.
TOYOTA MOTOR CORPORATION had the intent that it would like to develop the project into a profitable business while contributing for improvement of an environment on a global level.
Nippon Paper Industries had the intent that it would like to secure the procurement of the raw materials in the future for which purpose it has already expanded a tree farm plan.
Mitsui & Co., Ltd. had the intent that it can avail itself of the successful experience it has already made in their tree-planting project at the place.
The new joint venture starts with its capital totaled 250 thousand AUS$, increasing its capital stock little by little in accordance with the extension of the project.In the beginning, TOYOTA MOTOR CORPORATION has 90% and Mitsui & Co., Ltd. has 7% and Mitsui & Co. (Australia) Ltd. has 3% of the total shares of the company.Regarding this new venture as a foothold, three companies are planning to expand tree-planting areas all over the world.
The outline of a new joint venture is as follows;
(2) Location Melbourne, Australia
(3) Establishment 3 August, 1998
(4) Capital 250 thousand Australian dollar
(5) Equity participation TOYOTA MOTOR CORPORATION 90%
Mitsui & Co., Ltd. 7%
Mitsui & Co.(Australia) Ltd. 3%
(6) Executives President Tsukishima Kosaburo
Two directors,one each from TOYOTA MOTOR CORPORATION and Mitsui & Co., Ltd.
(7) Sales target 400~500 million yen / year