TOPICSIn this section, we review the highlights of Toyota Industries’ activities from April to October 2002.

NEWPLIn July 2002, Higashiura Plant started operations tomanufacture parts for car air-conditioning compressors. Themarket demand for our compressors is expected to rise, andin order to cope with this increase, we are reinforcing theproduction capacity of our facilities in Japan, North Americaand Europe. In Japan, now that we have completed ourHigashiura Plant, we have a three-plant structure — in Kariya,Obu and Higashiura.
Under the concept of using natural energy and attaining
harmony with the surrounding environment, we constructed
Higashiura Plant to consume 20% less electricity thanconventional plants of comparable size and production
capacity. We installed clean energy systems such as wind andsolar power generators as well as a cogeneration system. We
also installed a water recycling
system and a rainwater
utilization system to conserve
water resources.

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Local Production and Sale ofForklift Trucks in China

Commencement of Higashiura Plant

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In anticipation of expanding demand in China, TOYOTA
Material Handling Company (“TMHC”) is constructing a new
forklift truck assembly plant within the premises of Toyota
Industry (Kunshan) Co., Ltd. (“TIK”), which is engaged in theproduction of foundry parts in Kunshan, Jiangsu Province,
China. TMHC is slated to begin local production and sale offorklift trucks in April 2003. To begin with, the local plant willassemble 1-3 ton internal combustion forklift trucks, top
sellers in China, with an annual production capacity of 550
units. Closely monitoring the trend in demand, TMHC will
gradually increase unit production as well as the number ofmodels manufactured in China.

Local Production of Diesel Engines
in Poland
In October 2002, we established Toyota Motor Industries
Poland Sp.zo.o. (“TMIP”) jointly with Toyota Motor
Corporation (“TMC”) to manufacture diesel engines in JelczLaskowice, Poland. The Company’s equity share is 40%. To
accommodate an expected expansion of demand in Europe,
TMIP will engage in the production of 2000cc-class dieselengines. TMIP is expected to start operations in 2005, withan annual production capacity of 120,000 units. The total
investment in this enterprise is expected to be 170 million
euros.

ROIntroduction of Electric Pallet Trucks
into Japanese MarketDUCTS

products of BT Industries, already highly regarded in Europe
and the U.S., will lead to a realization of potential demand inJapan.

In May 2002, TMHC started
selling BT Industries’ electric
pallet trucks (BT MINIMOVERand BT ORION, but both soldas “Minimover” under the“TOYOTA L&F*” brand name)in Japan, as part of its pursuitof synergistic benefits with BTIndustries, a world leader inwarehouse trucks. Although
Japan’s warehouse truck
market is still small, TMHC
expects the marketing of the* L&F stands for “Logistics and Forklifts,” and refers to materials handling systems,and industrial vehicles and equipment.

Production Start-Up of2AZ-FE Gasoline Engines
In August 2002, we started
production of the 2400cc 2AZgasoline engine with aluminum
block and variable valve timing
under consignment from TMC.
This engine is fitted in the Estima(Previa) for Japan, Europe andAustralia.

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Exhibition of Materials Handling
Equipment at Hannover Messe 2002

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air-jet loom since its
introduction in 1996, theJAT710 air-jet loom, to bemarketed in January 2003,
and the LW600 water-jetloom. Also displayed was athree-dimensional cut-modelof a compact spinning system, whichenables spinning of high-grade compact
yarn with higher strength, less hairinessand improved evenness. The
JAT710 Air-Jet Loom
RX240NEW-EST, which is equipped withthis system, has been on the market since October 2002.

In April 2002, Hannover Messe, one of the world’s largest
industrial technology trade fairs, was held in Hannover,Germany, with the participation of more than 7,000 companies
from 80 countries around the world. Both Toyota Industrial
Equipment Europe, S.A.R.L. (“TIEE”), the European division ofTMHC, and BT Industries exhibited their own brand products at
CeMAT 2002, an exhibition within “The World Fair for Material
Handling and Logistics,” one of seven specialized fairs at
Hannover Messe.
TIEE showed mainly electric trucks such as the Easymoverelectric pallet truck, the 7FBRE reach truck and the 7FBMF
electric counterbalanced forklift truck, showcasing its wideranging product lineup and its capacity for finely-tuned afterservice. Under the theme of “Share Our Strength,” TIEE isconfident of success in promoting its ability to cater precisely toa broad range of materials handling needs.
BT Industries displayed a full range of products including
the CARGO counterbalanced trucks, as well as warehouse trucks
such as the BT IXION stacker truck, BT ORION/MINIMOVER
electric pallet trucks and BT VECTOR very narrow aisle truck.
Under the theme of “Don’t Buy Trucks,” BT Industriesemphasized the benefits of long-term rental and its capabilityto provide full maintenance services.

BT BoothTAdvanced, Environment-Friendly
Technology at Tokyo Motor Show 2002
We displayed a selection of our advanced auto technologies atthe 36th Tokyo Motor Show, held from October 29 toNovember 3, 2002 at the Makuhari Messe, Chiba, on theoutskirts of Tokyo. Under our show theme of “Toyota Industries
Corporation supports transportation to accommodate people
around the world,” we displayed our product lineup withemphasis on environmental safety, high efficiency and reduced
costs in a variety of materials handling situations. We also
introduced key devices and environmental and electronics
technologies that back up these products.
We showcased car air-conditioning compressors, including
the CO2 refrigerant compressor (displayed for the first time inJapan) and continuous variable displacement compressors, aswell as electronic parts such as a battery charging system forelectric vehicles, DC-DC converter for hybrid vehicles and supercompact radio tuner module. In the materials handling field, weexhibited a hand pallet truck andelectric hand pallet trucks, provided
by BT Industries on an OEM basis, aswell as Aichi
Corporation’struck-mounted
aerial lift.

TOYOTA 7FBMF
ElectricCounterbalanced
Forklift Truck

Cutting-Edge Textile MachineryShowcased at CITME2002
From October 15 to 19, 2002, the 8th China International
Textile Machinery Exhibition (CITME2002) was held in Beijing,
China. We displayed three units of the JAT610, our best-selling

Environmental Report 2002

implementation of LCA (Life Cycle Assessment). We also
outline our collective efforts to reduce the release ofpollutants during production processes and their impact
on the environment through efficient use of energy andresources. In addition, the report contains environmental
accounting data, calculated in accordance with theguidelines laid down by the Japanese Ministry of theEnvironment.
The contents of the latest Environmental Report,
together with details of our recent activities and related
matters, are also posted on our Web site at http://www.toyota-industries.com/environment/.

In July 2002, we published the latest edition of ourEnvironmental Report, produced annually since 1999.
Written with reference to guidelines established by theMinistry of the Environment, thereport explains our environmental
protection activities in detail. In our2002 edition, we detail the progressof our Third Environmental Action
Plan (April 2001 to March 2006), as
well as development of environmentfriendly products through the7