Focus on Business

Materials Handling
Equipment

Share
Our Strength
The Materials Handling Equipment Business is
fortifying its global No. 1 position through the
Toyota Material Handling Group (TMHG), a neworganization that integrates TOYOTA Material
Handling Company (TMHC), the global leader incounterbalanced lift trucks, and the BT Industries
Group, the world’s top name in warehousetrucks. The BT Industries Group of companies
were acquired and became subsidiaries of the
Toyota Industries Group in 2000.
Initiating full-scale activities in April 2006,
TMHG is already steadily generating a wide
range of noteworthy achievements. We believethat TMHG meets customers’ logistics needs
by providing one-stop shopping for products
and services that combine a broad scope ofmaterials handling equipment with optimalbusiness solutions. This approach enables
the Company to enhance customers’ logistics
efficiency worldwide, further strengthening
Toyota Industries’ position as a world-leading
supplier of materials handling equipment.
The Materials Handling Equipment Businessalso includes Aichi Corporation, a subsidiarythat commands the dominant share of Japan’s
market for aerial work platforms.

16

Toyota Industries Corporation

Annual Report 2007

Materials Handling Equipment

Market Overview for Materials Handling Equipment

Market for Materials Handling Equipment
Continues to Expand

advance over previous models and incorporates original systems that

Having experienced continuous growth since calendar year 2002

vibration along with both operator safety and comfort and operatingin tandem with a general economic recovery, the global market for

efficiency. Production of the newly improved model got underway inmaterials handling equipment grew by around 12% in calendar year

Japan in September 2006 and in the United States in January 2007,2006. Despite concerns about soaring prices for crude oil and steel

and will begin in Europe in September 2007. The new generationmaterials, the outlook from calendar year 2007 onward is also forof lift trucks is sold as the GENEO in Japan, the 8-Series in North

relatively high growth in emerging markets, particularly in the BRICs

America and International, and the Toyota Tonero in Europe.

contribute to marked improvements in terms of reduced noise and(Brazil, Russia, India and China) countries. Modest expansion in such

By improving our previous engines, as a leading manufacturer

key markets as Europe, North America and Japan is also expected.

we are able to offer a new series of lift trucks that not only meetsstrict exhaust emissions regulations in Japan one year in advance

Rising Safety and Environmental
Consciousness

of required implementation but also incorporates leading-edge

Customer needs within these markets reflect a growing global

the United States three years ahead of schedule and meets newawareness of safety and the environment, as evidenced by steadily

European emissions standards that will take effect in 2008.

technologies that satisfy stringent 2010 emissions regulations inrising demand for materials handling equipment that not only

In addition, a new hand pallet truck based on a new-type

minimizes such dangers as rollover accidents but also stresses

pump and manufactured on an entirely new production line was

ergonomics, low noise and low vibration, as well as reduced exhaust

introduced in Europe. This truck delivers improved performance andemissions.

is manufactured in an environment-friendly manner that reduces the

As a noteworthy response to customer needs, our new

impact on the environment in terms of chemical usage, lower energy

generation of engine-powered lift trucks represents a significant

consumption and highly efficient production processes.

Integration of TMHG
Since becoming partners in 2000, TMHC and the BT Industries

In managing and carrying out its operations, TMHG has divided

Group have continued to examine each other’s strengths in theits global markets into four regions—Europe, North America,

pursuit of synergies that include mutually supplying respective brandInternational and Japan—and established a Board as the decision-

products, sharing sales and production know-how, exchanging

making body within each of these four regional organizations. A

resources and jointly procuring products. Determining that the time

Management Committee composed of TMHG top management andwas ripe for maximizing synergies via the full-scale integration ofrepresentatives of each regional organization oversees the formulation

operations, TMHG became operational from April 2006 as a newof strategies and manages TMHG as a whole.

framework integrating TMHC and the BT Industries Group.

TMHG has also set up Sub-Committees comprising functional

Organizational Chart of Toyota Material Handling Group

TMHG

Management Committee

Global Strategy, Optimum Resource Allocation, Global Management Control

TMHJ
TMHE

TMHNA

TMHI

TMHJ

Toyota Material Handling
EuropeToyota Material HandlingNorth America

Toyota Material HandlingInternational

Toyota Material HandlingJapan

R&D, Product Planning, Information System/Information Technology, Plant Operation,
Sub-Committees Quality,
Human Resources and FinanceToyota Industries Corporation

Annual Report 200717

Focus on Businesssections of each regional organization to handle such principal

While the BT and Raymond brands wield strong brand powerfunctions as Quality, R&D, Product Planning, Information System/

in Europe and North America, respectively, the TOYOTA brand has

Information Technology, Plant Operation, Human Resources andachieved a solid position in Japan, the United States, Europe andFinance. Cross-sectional linkages permeating the entire organization

several International markets (e.g., Australia and a number of Asian

facilitate the sharing of best practices and know-how cultivatedcountries). In its operations, TMHG intends to firmly maintain its

regionally as well as globally.

core TOYOTA, BT and Raymond brands while solidifying the optimal

We are currently pushing ahead with measures aimed at realizing
our target of becoming “Undisputed No. 1” in the global industrial

brand and sales structures in each region to ensure that the power of
each brand is fully utilized.

truck market, and each of these initiatives has already begun to

Through the implementation of these measures, we plan to work

steadily yield important results. Examples of the growing synergies

toward capturing an even higher global market share while aiming for

already created include joint product development (e.g., three-wheel

a further increase in profitability.

electric lift truck for the European market), development of our own
key components, strengthening of our production structure through

TMHG’s Sales in 2006

the horizontal deployment of the Toyota Production System (TPS)

TMHG achieved record-high sales of almost 190,000 industrial trucks

throughout the entire group, the reorganization of sales structures inin calendar year 2006. Besides supplying cutting-edge products

a number of regions and enhanced development efficiency throughmanufactured in Japan, North America, Europe and China, TMHG

the sharing of systems.

also provides top-quality services worldwide.

Business Activities in Fiscal 2007 by Geographic Region

Japanese Market

Capitalizing on its comprehensive product lineup for materials

Amid a stable Japanese market, unit sales in the overall lift truck

handling, TMHJ intends to continue to offer products closely tailoredmarket increased 5% to 86,000 units in fiscal 2007.

to customer needs and provide solid logistics-related solutions.

Calendar year 2006 marked the 50th anniversary since wecommenced sales of lift trucks in Japan. Commemorating thisLaunch of the Tugcart AGV

occasion, Toyota Material Handling Japan (TMHJ) put more energy

Sales of the Tugcart AGV commenced in February 2007 in Japan.

into sales promotion activities, which resulted in an impressive 43%

Developed in response to a heightened need for AGVs that enable

market share for domestic sales of lift trucks in fiscal 2007. This

customers to reduce their logistics personnel and improve theirmeans we have maintained the top position in the Japanese lift truck

logistics processes, the Tugcart is easy to introduce, plus courses

industry for the 41st consecutive year. In September 2006, TMHJ

can be set up or changed by simply affixing magnetic tape oncommenced sales of the new generation of engine-powered 1- toguidepaths. It can also be used with existing carts without the need

3.5-ton internal combustion counterbalanced lift trucks (sold as thefor drastic modifications, and though only 19 cm high, boasts high

GENEO in Japan) following a full model change. As its mainstay

power with a maximum 1-ton towing capacity. Although the Tugcart

product, the GENEO provides dramatically greater product value

AGV is primarily utilized on factory floors within the manufacturing

in terms of safety, environmental attributes and ease of operation,industry at present, its wide range of applications extend fromand is expected to contribute significantly to the performance of thecomponents manufacturers seeking to increase automation toMaterials Handling Equipment Business.

product transport in the light manufacturing industry and tray

Aichi Corporation, which is involved in the manufacture and salesof aerial work platforms, posted increases in both sales and earnings

services at hospitals. Accordingly, sales expansion will be targeted byproposing these and other uses.

due to a brisk investment climate as Japanese companies continued
to enjoy strong sales.
The year 2006 also marked the 20th anniversary since we started
sales of materials handling systems. In response to greater demand
for automatic guided vehicles (AGVs), during fiscal 2007 we upgraded
our product lineup with the introduction of the Tugcart, a compact yethighly powerful AGV that enables a reduction in customers’ logistics
personnel as well as improvements in logistics processes.

18

Toyota Industries Corporation

Annual Report 2007

Tugcart AGV

Materials Handling Equipment

North American Market

Material Handling Europe (TMHE) established a new sales record for

Toyota Material Handling North America (TMHNA) increased its

TOYOTA-, BT- and CESAB-brand units.

lead as the No. 1 materials handling company in North America

TMHE took steps to both further develop its central organizational

for the fifth consecutive year. Of significant note was the TOYOTA

structure and launch new, unified sales and marketing organizations

brand’s 2006 growth rate, which was nearly double that of thein a number of European markets. Centrally, TMHE unveiled a newentire U.S. market for

management structure and identified areas—including sales, service

industrial trucks. In addition,and marketing—where customers will be better served by integrating

TMHNA launched the highly

these support functions.

anticipated new generation

European customers, particularly those with large fleets, areof engine-powered lift trucks

increasingly looking for materials handling suppliers who can(sold as the 8-Series in Northprovide them with a full range of products, supported by services,

America).

fleet management systems, as well as the flexibility of lease and

The 8-Series, with
70% less smog-forming
emissions than the 2007
U.S. Environmental

rental programs. To address these evolving market demands,
8-Series
Internal combustion
counterbalanced lift truckProtection Agency (EPA) federal emissions standards, is just one
environmentally focused initiative TMHNA is employing to distinguish

TMHE created a new European Key Accounts (EKA) Department
combining the previous Toyota and BT major account teams. The
EKA Department provides our largest customers with a consistent,
comprehensive offering of TOYOTA and BT products and services.
TMHE has also studied each European market to determine theitself from its competitors. Another key initiative is fuel-cell lift trucks.

best approach to strengthen customer relationships and improve

A prototype of the industry’s first fuel-cell lift truck was proudly

customer contact. TMHE has launched unified Marketing & Sales

displayed at ProMat 2007. The TOYOTA prototype uses hydrogen as

Companies in a number of European markets, including the Nordic

its main power source and produces electricity without combustion,

countries, Germany and the United Kingdom, each of which will

generating zero CO2 emissions. Additionally, Raymond received aprovide its market with a complete range of TOYOTA and BT

contract from the New York State Energy Research and Development

products and services.

Authority (NYSERDA) for a hydrogen fuel-cell feasibility study at a

At the same time, TMHE has taken steps to increase the number

manufacturing facility of Toyota Material Handling Manufacturingof fully owned distribution companies by acquiring independent

North America (TMHMNA) in Greene, New York, which we believe

distributors, such as Toyota distributors in Austria, Finland, Greece,

will expedite the commercialization of our environment-friendly

the Netherlands and Spain.

technology. TMHMNA also continued implementation of TPS at

In terms of its available products, TMHE had very positive results

its manufacturing facilities in Greene, New York; Muscatine, Iowa;

for its new range of three-wheel, 24-volt electric counterbalanced

Brantford, Ontario; and Columbus, Indiana. We believe this will enable

trucks marketed under the TOYOTA, BT and CESAB brands. This

improvement of our already strong reputation for product quality andrange was developed by engineers in Europe in close collaboration

reliability. Furthermore, TMHMNA continued efforts to competitively

with their colleagues in Japan and is an excellent example of our

supply high-quality products; as part of this effort, the procurement

global coordination and synergy building. The success of thesedepartment was centralized at its facility in Greene, New York, which

trucks, which are produced at TMHE’s manufacturing facility in

we believe will enable more cost-effective production of lift trucks.

Bologna, Italy, demonstrates the kind of benefits that can be realized

Many other significant events took place during the fiscal year

by further integration.

under review. Raymond received an award for its human resources

Furthermore, a new range of compact TOYOTA electric tow

development policies from the New York Management Council in

tractors was introduced, and a number of BT-brand products wererecognition of its best practices in health and safety that are part of its

launched in 2006, including the market’s fastest horizontal transport

unsurpassed safety program. Additionally, Raymond will celebrate thetruck that delivers driving speeds of nearly 20 km/h with three loaded

production of its 300,000th Raymond-brand lift truck during 2007.

full-sized pallets. A new BT-brand truck designed for customers

Meanwhile, the TMHMNA manufacturing plant in Indiana received

needing to stack and load/unload two pallets on top of each otherthe Indiana Governor’s Award for Environmental Excellence andwas also released to market along with a new hand pallet truck thatcelebrated the production of its 250,000th TOYOTA-brand lift truck.

uses the newly developed pump production line in Mjölby, Sweden.
The new pumps further enhance the durability of the truck andEuropean Market

reduce the environmental impact.

The overall European market for industrial trucks continued to

Other highlights included the power truck division in Mjölby

show significant growth, with especially strong growth recorded

reaching a milestone in 2006 with the shipment of its 500,000th unit,

in the markets of Central and Eastern Europe. Accordingly, Toyota

an electric pallet truck. The factory in Ancenis, France, celebrated

Toyota Industries Corporation

Annual Report 2007

19

Focus on Business

10 years of production and 100,000 units of cumulative production,

network to meet growing demand, while in the Middle East, efforts

and the factory in Bologna, Italy, earned the International Bestare being carried out to rationalize and strengthen operations. The

Factory Award for excellence in such areas as quality, lead-times andestablishment of a sales and service base in India is also a key focus

innovation.

in view of a growing need for materials handling equipment andquality solutions for customers’ planned distribution centers. With

International Market

the proliferation of local production plants for a variety of industries

These markets include Africa, Asia, the Middle East, Oceania andincluding car manufacturers and suppliers for these plants, TMHI will

South America—areas where economic expansion is creating

work to ensure quality products will be available to meet these needs.

growing demand for materials handling equipment. Prominent among

In addition to activities in the marketplace, we have also

these areas are the BRICs countries, where Toyota Material Handlingfocused on internal structures in order to ensure the organizational

International (TMHI) is concentrating major efforts on meeting

infrastructure is in place to support our business across the

expanding requirements for its products and services. The ability to

substantial number of markets under our responsibility. To this end,

offer a full range of counterbalanced lift trucks and warehouse trucks

we have rationalized key management areas to integrate the skills

is of vital importance in this process.

within our international operations. This enables us to drive our

TMHI’s activities have included the strengthening of its
production, sales and service capabilities at its bases in China.
Specific measures there include a structured training process of
its sales and service network to ensure a high level of productknowledge so that customers can gain support in all areas ofbusiness in an ever more coherent fashion, as well as increase ourefficiencies and competencies.
These and other measures have contributed to continued
favorable results in International markets.
September 2006 marked the start of imports from Japan of thematerials handling, including major investment projects where TMHI

new generation of engine-powered lift trucks (sold as the 8-Series in

can offer sophisticated software systems designed to maximize

International). The enhanced safety and environmental performanceutilization of space. For distribution centers and other complexof the 8-Series have earned this lift truck especially high acclaim,

applications, its own regional experts in Shanghai support thewhich is underscored by a steady increase in unit sales.

national dealer network. In Brazil, TMHI is enhancing its sales

Looking Ahead

Japanese Market

and commenced training for distributors worldwide. A specialized

In 2007, we anticipate a stable business environment supported bytraining facility is under construction in Handa, Aichi Prefecture, and wesustained growth in the Japanese industrial truck market.

will continue to actively engage in human resources development toAgainst this backdrop, TMHJ aims to expand industrial truck

ensure the future growth of Toyota Industries.

sales in the domestic market by highlighting the product value of the
new generation of engine-powered lift trucks launched in September

North American Market

2006. We also realize it is increasingly important to provide the kinds

TMHNA anticipates that the general industrial truck market in Northof services that comprehensively support customers’ logistics not only

America will slow down in 2007, but that the market for electric lift

through sales of materials handling products but also by providing

trucks will remain strong. The continued strength of the latter market

solutions. Keeping this in mind, we intend to deploy solution-based

coincides with TMHNA’s continued environmental focus. With several

sales with TPS at the core and respond to customer needs from both

environmental accolades already under its belt, TMHNA will again makethe hardware and software aspects.

this important business and social issue a top priority. Several new

We established the TMHG Training Center as the organization

including a tow tractor and a Class 3 AC-powered truck. Recognizing

professionals with high levels

that the strongest segment of the electric truck market consists ofof expertise and abilities in thecompanies where warehousing, distribution or order fulfillment areareas of sales and services atcritical success factors (e.g., wholesale and retail distribution), ongoingboth domestic and overseas

investment in the development of more reliable, high-performance,

distributors. We have alreadyRaymond-brand electric lift trucks will continue to play a key role indevised new training curricula

20

electric lift trucks will be launched under the TOYOTA brand in 2007,

overseeing the nurturing of

Toyota Industries Corporation

TMHG Training Center

Annual Report 2007

enabling distributors to both trim costs and increase throughput.

Materials Handling Equipment

Through both of TMHNA’s market-leading TOYOTA and Raymondof safety, productivity, durability, comfort and the environment. The

brands, we remain committed to helping our customers improve their

new lift trucks will offer a formula (known as the Tonero+ formula) thatbusiness. Under the TOYOTA brand, for example, we are set to launchallows customers to specify additional features in the areas of safety,

the new “Toyota Fleet Solution” fleet management program, a data-

productivity, comfort and durability in order to fulfill their individual

driven, comprehensive approach to fleet management designed tobusiness needs.

deliver better bottom-line business performance to customers. Under

In addition, several truck models will be equipped with a built-in

the Raymond brand, we plan to continue to focus on anticipating

wireless communication system. This innovative system will provide

customers’ needs and developing warehousing solutions to improvecustomers with remote access to performance data from the trucks

Raymond’s position as the leading provider of materials handlingand will allow monitoring of the battery status, with collision sensors

equipment to this large market segment.

providing additional data.

The year 2007 also marks the 40-year anniversary of establishing
TOYOTA-brand lift truck operations in the United States. From thefirst lift truck, a cushion tire 6,000-pound capacity internal combustion

International Market

model introduced nearly four decades ago, to the new generation of

TMHI sees continuing and significant growth potential in International

engine-powered lift trucks (sold as the 8-Series in North America),

markets—a trend that has been further developing over the 12

Toyota continues to push the bounds of product and technology

months ended March 31, 2007 and shows no sign of abating. This

innovation with its full line of high-quality lift trucks.

trend underlines the development of many markets, and confirms theimportance of efficient logistics for industrial and commercial partners.

European Market

Where customers seek to build and invest in a business, the need for

There are some concerns that the rate of growth in the European

an informed supplier to deliver good solutions, products and support

market will slow down due to the persistent strength of the euro andservices is paramount. Strong growth in fiscal 2007 in the fields ofthe effects of a decelerating U.S. economy. Nevertheless, we foresee

third-party logistics and warehousing/distribution centers emphasizes

robust demand, particularly in Central and Eastern European countries.

this point, and is a key component of business planning.

During fiscal 2008, TMHE intends to continue to integrate a

Our focus continues to be directed at improving internal structures

number of central support functions as well as local operations in

to ensure the right levels of support to our market operations. We

countries where it has determined this would allow operations tolook to continue our commitment in key markets to provide high-improve service to its customers.

quality sales and service operations and to ensure that local skill levels

We believe that our commitment to investment in productare further developed through carefully planned training courses.

development will lead to several new and renewed items in our

We strive to underpin our position as a market leader by developing

warehouse and counterbalanced product ranges, including the launch

products that accurately ascertain the needs of different markets andof the new generation of engine-powered lift trucks (sold as theby establishing optimal sales and service structures in all markets, with

Toyota Tonero in Europe). These 1.5- to 3.5-ton internal combustiona strong focus on market coverage and on quality of products andcounterbalanced lift trucks demonstrate the best of Toyota’s global

support to ensure customer satisfaction.

research and development capabilities and give European customers a
European-produced truck that addresses their specific needs in terms

TMHI remains dedicated to providing the optimum solutions for its
customers.

Worldwide Manufacturing Bases of TMHG

Toyota Industries Corporation

Annual Report 200721

Focus on Business

TopicsToyota Industries Displays Hybrid Lift Trucks at EVS 22

awareness and solutions,

In October 2006, Toyota Industries displayed its hybrid lift truck

communication,

prototypes, developed jointly with Toyota Motor Corporation, atand remuneration

the 22nd International Battery, Hybrid and Fuel Cell Electric Vehicle

and awareness. The

Symposium & Exposition (EVS 22). This is the world’s largest

management of Raymondinternational symposium for electric vehicles, which covers suchis making its best efforts

fields as electric vehicles, hybrid cars and fuel-cell cars. The eventto ensure this program

attracted participants from a vast range of sectors, spanning notfunctions efficiently.

only manufacturers and ordinary users from around the world but
also representatives of nationaland municipal government

BT Attains Cumulative Production of 500,000 Warehouse
Trucksbodies, research institutes and the

The BT power truck division in Mjölby, Sweden, achieved cumulative

media. Amid a rising tide of global

production of 500,000 units in November 2006. While it took 28

interest in electric vehicles,

years to reach cumulative production of its first 100,000 units since

this exhibition served as ancommencing production 60 years ago, BT subsequently accelerated

excellent forum for extolling

production to produce its mostthe benefits of ourrecent 100,000 units over a period

future technologies.

of just three years. Although attaining
aggregate production of 500,000

Toyota Factory Celebrates Production Milestone

units represents a significant

In September 2006, the Toyota Industrial Equipment plant in Ancenis,

milestone, BT will continue working

France, celebrated 10 years of operation and cumulative production

to establish a structure that will allow

of 100,000 units. The Ancenis facility produces electric and engine-

the annual production of 60,000

powered counterbalanced lift trucks for the European market, andunits in line with plans to further

since beginning production in 1996 has established itself as a world-

expand sales.

class manufacturing plant.

Raymond Celebrates 85th Anniversary

BT New Compact Three-Wheel Counterbalanced Lift
Truck Earns Safety Award

Increases in population and evolving lifestyles have spurred increased

In October 2006, BT’s compact three-wheel counterbalanced lift truck

demand for warehouses and delivery capabilities. In responding toearned recognition as a lift truck with the highest standard of safety

this trend, Raymond has continually developed high-performance lift

at the Préventica exhibition in France. This biennial exhibition focusestrucks, thus playing a key role in enabling shippers to trim costs andon safety and ergonomics, and the most recent exhibition attracted

raise processing capabilities.

6,000 visitors. The BT-brand series of C3E-R electric lift trucks wasUpon the occasion of its 85th

awarded the Innovation Prize, winning high acclaim for such featuresanniversary in 2006, Raymondas the C3E-R’s automatic speed reduction on cornering and drive-

remains committed towheel direction indicator. The C3E-R was developed by engineers in

responding to customer needs

Europe in close collaboration with their colleagues in Japan and is an

as a leader in both offering

excellent example of global coordination and synergy building in thematerials handling equipment

Toyota Material Handling Group.

and providing solutions.

Cesab Wins International Best Factory Award

22

Raymond Receives Award for Human Resources
Development Policies

Cesab’s factory in Bologna, Italy, earned the International Best Factory

In October 2006, Raymond received an award for its humanSponsored by Bocconi University’s SDA Bocconi, one of the world’s

resources development policies from the New York Management

authoritative institutions in economics and business administration,Council in recognition of its best practices in health and safety that

as well as Sole 24 Ore, a leading economic newspaper, this award isare part of its unsurpassed safety program. Raymond provides

presented based on a comprehensive evaluation that encompasses

its employees with a safety program comprised of five different

quality, lead-times, flexibility and innovation. Cesab has achieved highprincipal categories: policies and procedures, practice, problem

name recognition internationally.

Toyota Industries Corporation

Annual Report 2007

Award, which is presented to excellent production plants in Italy.

Materials Handling Equipment

Products for the Japanese Market

Industrial Vehicles

GENEO (8FG25)

GENEO-B (7FB15)

GENEO-E (7FBE15)

GENEO-R (7FBR15)

Tow Tractor

Skid Steer Loader

Internal combustion
counterbalanced lift truck

Electric counterbalanced
lift truck

Three-wheel electriccounterbalanced lift truck

Electric reach truck(2TD25)(4SDKL8)

Materials Handling Systems

Partner Rack

Rack Sorter B

Rack Sorter P

Tugcart2AFBR15APLB8Rail-less mobile rack

Automated storage andretrieval system(Plastic container type)

Automated storage andretrieval system(Pallet type)

Automatic guided
vehicle system

Automatic guided
lift truck

Automatic guided
pallet truck

Please visit www.aichi-corp.jp for
more information.

Truck Mount Aerial Work Platforms

SH15B

SE08C

TZ-10A type “RR”

Self-Propelled Aerial Work Platforms

SC40A

SR-18AJ

RX07B

Note: Although Aichi Corporation is not integrated into the Toyota Material Handling Group, it comprises an important part of the Materials Handling Equipment Business.

Toyota Industries Corporation

Annual Report 200723

Focus on Business

Products for the North American Market
Please visit www.toyotaforklift.com for more information.

7FGU708FGCU25

7FGCU55-BCS

Internal combustion pneumatic tire
counterbalanced lift truck

Internal combustion cushion tire
counterbalanced lift truck

Internal combustion cushion tire
counterbalanced lift truck—boxcar
special model

8FGU25

7FBEU20

7FBCU25

7BPUE15

Three-wheel electric counterbalanced
lift truck

Electric cushion tire counterbalanced
lift truck

Electric order picker

Internal combustion pneumatic tire
counterbalanced lift truck

Please visit www.raymondcorp.com for more information.

Raymond Model 7400
Reach-Fork Truck

Raymond Model 4200 StandUp Counterbalanced Truck

Reach truck

Electric counterbalanced truck

Raymond Model 8400 Pallet Truck
Electric pallet truck

24

Toyota Industries Corporation

Annual Report 2007

Raymond Model 5600
Orderpicker

RaymondSwing-Reach Truck

Order picking truck

Very narrow aisle truck

Materials Handling Equipment

Products for the European Market
Please visit www.toyota-forklifts.eu for more information.

Internal combustion counterbalanced
lift truck (1.5-3.5 ton)

7FG/D35

7FBMF25

Internal combustion counterbalanced
lift truck (3.5-5 ton)

Electric counterbalanced lift truck (80V)*Launched in calendar year 2007

7FBEF15

4CBT2Three-wheel electric counterbalanced
lift truck (48V)

Three-wheel electric counterbalanced
lift truck (24V)Electric tow tractor

Please visit www.toyota-forklifts.eu for more information.

VectorReflexStratos

Ixion

Very narrow aisle truck withshuttle forks

Reach truck

Powered stacker truck withstand-in cab

Support arm stacker truck

Minimover

Opus

Orion

Pro Lifter

Powered stacker truck

Low-level order picking truck

Powered pallet truck

Hand pallet truck

Toyota Industries Corporation

Annual Report 200725

Focus on Business

Car Air-Conditioning
Compressor

Car Air-Conditioning
Compressors Top
20 Million Units to
Lead the Global
MarketWith annual sales exceeding 20 million units,
Toyota Industries commands the world’s No. 1
share for car air-conditioning compressors—
testimony to the high reliability of theseproducts. Underlying this leading position is
our ability to develop new products that we
believe anticipate the needs of the times as wellas outstanding technological capabilities that
support product development. In maintaining
the top global position, we remain committed
to addressing the need for car air-conditioning
compressors that are more compact, lighter inweight and offer higher performance, thereby
enhancing the comfort of vehicles.

26

Toyota Industries Corporation

Annual Report 2007

Car Air-Conditioning Compressor

Toyota Industries Achieves Record Sales of
20.45 Million Units
The Car Air-Conditioning Compressor Business is one core businessof the Automobile Segment as well as an important strategic
business of Toyota Industries. Tapping excellent development
and technological capabilities, Toyota Industries develops andmanufactures high-quality, efficient products that it supplies not
only to Toyota Motor Corporation (TMC), but also to other premier

TD Automotive Compressor Kunshan Co., Ltd.

automakers worldwide. In so doing, we believe we are making
valuable contributions to technological advances, improvements in
comfort and fuel efficiency of vehicles.
Thanks to the development of products that anticipate user

Product Development Capabilities that
Respond to Global Needs Focusing on Basic
Performanceneeds and to our proactive sales expansion activities, Toyota

Toyota Industries’ car air-conditioning compressors continually

Industries’ total sales of car air-conditioning compressors in fiscal

anticipate the latest user needs, earning high acclaim for our2007 reached an all-time high of 20.45 million units, an increase of

products from TMC and other leading automakers worldwide.

1.34 million units from the previous fiscal year. In gearing up to meet

We have compiled a solid record of ongoing achievements

increased demand, we made further strides in strengthening ourin developing technologically advanced car air-conditioning

optimal global production structure during the fiscal year. Among

compressors, with strong emphasis on basic performancethe more noteworthy achievements, in April 2006 Toyota Industries

requirements, including reliability at high operating speeds, quiet

began producing variable-displacement compressors at our fourth

operation, compactness, light weight and fuel efficiency. Moreover,overseas compressor manufacturing subsidiary, TD Automotive

because our customers are leading global automakers, we engage

Compressor Kunshan Co., Ltd. (TACK) in Kunshan, China. In North

in well-honed product development to closely tailor our compressors

America, we strengthened our production capacity for variable-

to diverse customer needs while vigorously promoting productdisplacement compressors at TD Automotive Compressor Georgia,

development with a view to the future.

LLC (TACG), while in Japan we completed renovation of our Obu
Plant in May 2006.

As excellent examples of major world-first technologicaldevelopments, in 1981 Toyota Industries developed a compact,

All of Toyota Industries’ car air-conditioning compressors arelightweight 10-cylinder swash-plate fixed-displacement compressor

supplied to DENSO Corporation (DENSO), which in turn sells themwith an excellent reputation for quietness and superb reliability

to leading automakers worldwide.

at high operating speeds. Adding to our achievements, in 1995

Compressor Sales(Million units)

22
20World’s first electricallydriven compressor
equipped with an inverter

World’s first mass-produced
electrically driven compressor
for hybrid vehicles

18
16
14

World’s first variable-displacement
clutchless compressor

12
World’s first one-way swash-plate
variable-displacement compressor

10
World’s first 10-cylinder
swash-plate fixeddisplacement compressor

8
6
4

OthersVariable-displacement compressor
Fixed-displacement compressor

20FY

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07

Toyota Industries Corporation

Annual Report 200727

Focus on Businessthe development of an internally controlled one-way swash-plate

Operating an Optimal Global Production
Structure

variable-displacement compressor that contributes to lower CO2

Underscoring our firm commitment to meeting the needs ofemissions and energy savings by reducing the load on the engine tocustomers worldwide, Toyota Industries has been striving to realize

increase fuel efficiency. In 1997, Toyota Industries once again broke

a flexible global production structure for its Car Air-Conditioning

new ground by successfully developing an externally controlled

Compressor Business.

we addressed growing concerns about the environment with

continuous variable-displacement clutchless compressor that

Toyota Industries currently operates a far-reaching network ofenhances acceleration and reduces energy consumption by changing

production bases spanning Japan, North America, Europe and Asia.

displacement in response to the heat load and engine revolutions.

In Japan, our largest production base, we have built an integrated

Subsequently, in 2003 we collaborated with DENSO to develop an

production structure encompassing molds, die casts, processing andelectrically driven compressor for hybrid vehicles. This compressor

assembly centered on the Kariya, Obu and Higashiura plants. These

allows the air conditioner to be operated even when a hybrid vehicle’s

three facilities play a key role as mother plants for our domestic andengine is stopped, thus realizing an optimal balance between fueloverseas subsidiaries. As one example, these plants’ highly advanced

efficiency and comfort. In 2005, Toyota Industries developed a newaluminum die-cast technologies and technologies for automatingcompact electrically driven compressor equipped with an inverter.

production lines utilizing robots are being deployed at production

We believe that each of these car air-conditioning compressors
offers irrefutable proof of the technological and competitive superiority

bases in Japan and overseas, enabling major achievements.
In North America, Michigan Automotive Compressor, Inc. (MACI),

that has propelled Toyota Industries to the world’s top position in

based in the U.S. state of Michigan, has been producing swash-terms of unit sales and market share.

plate fixed-displacement compressors since 1990. In December

Looking to the future, we intend to continue our active approach

2005, TACG, which is located in the U.S. state of Georgia,

to developing cutting-edge technologies and new products thatbegan production of variable-displacement compressors as ourcontribute to the development of new cars by automakers worldwide,

second North American compressor production base. Although

not only for conventional engine-powered vehicles but also for hybrid

fixed-displacement compressors are currently the mainstream

vehicles, for which global demand is expected to rise amid soaring

compressor used in North America, we anticipate that greater global

energy prices and mounting concern for environmental protection.

environmental awareness will drive increased demand for variable-

Worldwide Manufacturing Bases of Car Air-Conditioning Compressor

TDDK
Toyota Industries
Corporation

DNTS

MACI
TACG
ACTIS

DWHI
YSD
TACK
SUBROS
DNIA
Consolidated subsidiaries
Licensed manufacturers

DNBR

Toyota Industries produces compressors through a global tripolar structure encompassing Europe, the United States and Asia (including Japan), established through direct
investments. We also license production in Asia (excluding Japan) and South America. By carrying out production near our markets, we believe we are better able to supply
products precisely tailored to local market needs while reducing shipment costs and exchange rate risks.

28

Toyota Industries Corporation

Annual Report 2007

Car Air-Conditioning Compressor

displacement compressors, which enable excellent energy efficiency.
In Europe, where environmental awareness is high, TD Deutsche
Klimakompressor GmbH (TDDK) has been producing swash-plate
variable-displacement compressors since 2000.
In China, where the automobile market is recording remarkable

TopicsObu Plant Renovation Completed
In fiscal 2007, we completed the phased renovation of

growth, we began producing variable-displacement compressors at

the Obu Plant in Japan that began in 2000. The Obu

TACK in April 2006.

Plant carries out integrated production encompassing

As these examples illustrate, Toyota Industries is making

the manufacture of molds for aluminum die-castsignificant progress in further strengthening its global production

products and aluminum die casts as well as component

structure.

processing. The Obu Plant plays a key role both as the

Reflecting our determination to contribute to reducing theenvironmental load and reusing resources, we also remanufacture

Materials Development Center and as the mother plantfor production bases in Japan and overseas.

compressors for the aftermarket (auto replacement parts andsupplies market) at Texas-based ACTIS Manufacturing, Ltd., LLC in
the United States.
Regarding future trends, we foresee increased demand forcompressors in line with a rise in automobile sales. Consequently,
Toyota Industries will push forward with initiatives to upgrade its
global production structure to respond to customer needs for globally
optimal production and procurement.
* Remanufacturing involves repairing and recycling products to give them the same functions as new
products by overhauling rebuilt, used and malfunctioning products and exchanging components.

Fixed-Displacement Type

10S17 compressor

SCS06 compressor

SV07 compressor(Swash-plate type)(Scroll type)(Vane type)Continuous Variable-Displacement TypeFor Hybrid Vehicles

7SBU16 compressor

7SEU17 compressor

ES27 electric compressor

ES34 electric compressor(Swash-plate type)(Externally controlled,
clutchless type)(Hermetic scroll type)(Hermetic scroll type)

Toyota Industries Corporation

Annual Report 200729

Focus on Business

Automobile

A Key Role inToyota Motor
Corporation’s
Global Production
Toyota Industries supports Toyota Motor
Corporation’s (TMC) global operations byassembling compact and midsize automobiles
as one of the Toyota Group’s vehicle assemblyarms. We also contribute to TMC’s operations
on a multiplicity of other fronts. These include
proactive participation in TMC’s new car
development, development and productionof diesel engines as well as power electronics
and other car electronics products, andmanufacture of stamping dies. In January 2007,
we established the Automotive Headquarters tofurther strengthen this segment as a pillar of ouroperations on par with the Materials Handling
Equipment Segment.

Automotive Headquarters

Vehicle Division
Machinery &Tools Sub-Div.

30

Toyota Industries Corporation

Annual Report 2007

Engine Division

Electronics
Division

Automobile

Vehicleupon a full model change in 2005, the third-generation RAV4 offers

Manufacturing TMC’s
Global Models

class environmental and safety performance. Of particular note, wean even roomier interior, superb driving performance and worldparticipated in TMC’s development project for the RAV4 for Europe
from the initial phase. Moreover, the RAV4 is also equipped with
Toyota Industries’ AD diesel engine produced at the Hekinan Plant.

Toyota Industries has compiled a stellar record ofachievement during the 40 years since commencing
vehicle production under consignment from TMC
in 1967. At present, Toyota Industries manufactures
two Toyota models, the Vitz (Yaris outside Japan) and
the RAV4 for overseas markets. Additionally, as an
automobile body manufacturer, we participate in thedevelopment of new Toyota vehicles, handling both
the development and design of automobile bodies.

A Vital Role in TMC’s Global Operations
Toyota Industries’ vehicle assembly operations have also been
lauded for maintaining the Toyota Group’s top-class quality, cost anddelivery (QCD) and capabilities in making quick production launches.
In fiscal 2007, we received the Superior Quality Performance Award
from TMC in recognition of our efficient, high-quality production
carried out under the Toyota Production System as well as for ourdaily improvement activities.
Annual global production of the Vitz (Yaris) tops more than
500,000 vehicles, more than one-third of which is produced by

Record-High Production of 350,000 Vehicles
Achieved

our Nagakusa Plant. Meanwhile, production of the RAV4 is carriedIn fiscal 2007, Toyota Industries achieved record-high production of

Plant is also supporting preparations for production at Toyota Motor

350,000 vehicles, which was supported by robust sales of the RAV4

Manufacturing Canada Inc., which is set to begin production of thein overseas markets.

RAV4 in 2008.

out at the Nagakusa Plant and TMC’s Tahara Plant. The Nagakusa

Since commencing vehicle assembly operations under

Determined to continue playing an important role in TMC’sconsignment from TMC in 1967, Toyota Industries has produced

global business, Toyota Industries intends to maintain its top-levelsuch vehicles as the Starlet, Sprinter Carib and Corolla (van). In 1999,

QCD, while expanding its business domains that contribute to

we started manufacturing the Vitz as the successor model of the

TMC, including further increasing its role in the development of newStarlet. The first-generation Vitz (Yaris) sparked an expansion in thevehicles and supporting the quick start-up of new vehicle production

compact car market in Japan and subsequently attained a positionat overseas production plants.

as a global-standard compact car. Undergoing a full model change in2005, the second-generation
Vitz (Yaris) integrates the

Vehicle Production

most-advanced safety and(Thousand units)
400

Topicsenvironmental technologies,
earning extensive acclaim

Toyota Industries Receives Superior
Quality Performance Award

300

worldwide as a compact car of
the highest quality. Sales of the

In February 2007, the Vehicle Division and Machinery &Tools Sub-Division (stamping dies) received the Superior

200

Vitz (Yaris) were launched in the
United States in 2006.

Quality Performance Award from TMC. This marks theseventh time the Vehicle Division has earned this award in100

Toyota Industries
commenced production of the
RAV4 in 2001. Relaunched

the past 10 years and the eighth time for the Machinery &Tools Sub-Division over the same period.

0
FY

03

04

05

06

07

Vehicles

Vitz

RAV4

(Yaris outside Japan)

Toyota Industries Corporation

Annual Report 200731

Focus on Business2007 we constructed a new testing center to bolster our diesel

Engineengine development capabilities. Looking ahead, we will seek tomake further contributions through actively participating in the joint

Sharp Increase in
Diesel Engine Sales Lift
Production to RecordHighdevelopment and production of diesel engines with TMC.
Toyota Industries also engages in broad-ranging production ofengines for industrial equipment, including engines for lift trucks thatoffer high power output and excellent environmental performance,
as well as engines for other materials handling equipment and gas
engine-driven heat pumps. Toyota Industries’ engines represent thesource of competitiveness of its lift trucks, which have secured theNo. 1 global market share.

Toyota Industries’ Engine Business manufactures
diesel and gasoline engines. In addition to
manufacturing engines for vehicles underconsignment from TMC, Toyota Industries
manufactures engines for lift trucks and othermaterials handling equipment. As another important
activity, we engage in the joint development of newdiesel engines with TMC.

Favorable Results for New Diesel Engineswith Outstanding Environmental Performance

At our production bases worldwide, we also manufacture abroad assortment of engine parts that include engine blocks, heads,
camshafts and crankshafts.

New Testing centerIn fiscal 2007, Toyota Industries achieved record-high sales of
490,000 engines (unit sales to outside customers) on the back ofEuropean market and the Lexus IS as well as KD diesel engines forDeveloping Global Business throughDomestic and Overseas Collaboration

TMC’s Innovative International Multi-Purpose Vehicle (IMV).

Our engine production operations have garnered strong praise notincreased sales of AD diesel engines fitted in TMC’s RAV4 for the

Our new diesel engines, noted for their superb environmental

just for responding quickly to changes due to flexible production lines

performance, are particularly attracting attention. Toyota Industries

utilizing automatic guided vehicles but also for the ability to start up

manufactures AD diesel engines jointly developed with TMC, which

production in short time periods.

comply with Europe’s strict EURO 4 environmental regulations on

Following the 1994 establishment of Toyota Industry (Kunshan)

exhaust emissions. The advantages of diesel engines in comparison

Co., Ltd. (TIK), an engine foundry parts production company in China,

with gasoline engines lie in high fuel efficiency and low CO2

we have steadily strengthened our engine production capabilities

emissions—a key reason

overseas. At present, we operate production bases for engines anddiesel engines are in highEngine Productionengine parts at TIK and Toyota Industry Automotive Parts (Kunshan)

demand in Europe. In the(Thousand units)
500

Co., Ltd. (TIAP) in China, Kirloskar Toyoda Textile Machinery Private

North American market aswell, the number of pickup

Limited (KTTM) in India and Toyota Motor Industries Poland Sp.zo.o.
(TMIP) in Poland, allowing us to further contribute to TMC’s global

400

development.

trucks fitted with diesel
300

engines is expected to riseamid rapidly increasing energy

In Japan, the Hekinan Plant (engine assembly and parts
processing), together with the Kyowa Plant (engine parts processing)200

and Higashichita Plant (foundry parts, aluminum die casts, engine

prices.
Reflecting our firm

assembly and parts processing) function as mother plants for100

overseas production bases in providing support for plant start-ups

commitment to becoming
a top manufacturer ofdiesel engines within the
Toyota Group, in fiscal

32

Toyota Industries Corporation

0
FY

03

04

05

Gasoline engine
Diesel engine

Annual Report 200706

07

and operations. Through this global cooperation, we believe we areable to assure QCD at the highest levels and raise productivity ateach of our overseas plants.

Automobile

Worldwide Manufacturing Bases of Engine

TMIP
Manufacture of diesel engines for
TMC’s plants in the U.K. and Turkey

TIK

Hekinan Plant

Kyowa Plant

Manufacture of foundry parts forJapan and manufacturing bases in
Poland and India

Manufacture of diesel andgasoline engines

Manufacture of engine
parts

KTTM

TIAP

Higashichita Plant

Manufacture of transmission parts for
TKAP

Manufacture of foundry parts forengines

Manufacture of foundry parts
Manufacture and supply of diesel engines for IMV Project

Engines

2AD diesel engine

2KD diesel engine

2AZ-FE gasoline engine

1FZ-FE gasoline engine(Displacement: 2.2 liters, usedin the Avensis, RAV4, Corolla
Verso and Lexus IS)(Displacement: 2.5 liters, usedin the Hilux Vigo)(Displacement: 2.4 liters, used in
the Estima)(Displacement: 4.5 liters, used in
the Land Cruiser)

4Y gasoline engine

Cylinder block for
AD diesel engine

Cylinder head for
AD diesel engine(Displacement: 2.2 liters, used in
lift trucks)

Toyota Industries Corporation

Annual Report 2007

33

Focus on Business

Car Electronics
Stamping Dies

voltage direct current (DC) of the main battery to a lower voltage torecharge the auxiliary battery and supply power for lights, wipers,
the horn and other in-car devices. We also develop and manufacturecompact, low-cost DC-DC converters for electric power steering

Manufacturing Key Parts
for Hybrid Vehicles andStamping Dies

systems for hybrid vehicles.

Utilizing power electronics circuit technologies
and electric drive system development capabilities
cultivated through its experience with electric lift
trucks, Toyota Industries develops and manufactureselectronic components and devices for automobiles,
including hybrid vehicles. Toyota Industries also
boasts an abundance of experience in manufacturinghigh-quality automotive stamping dies.

products through a serialization of existing products such as DC-

A wide selection of Toyota Industries’ products also includes
DC-AC inverters for cars with hybrid and conventional engines. The
inverter is capable of converting currents into the same voltage ashousehold electricity, thereby allowing the use of various household
electronic appliances.
In fiscal 2007, Toyota Industries began shipments of numerous
DC converters for the Camry Hybrid for North America and DC-DC
converters for electric power steering (EPS) for the Lexus LS.
Amid growing worldwide interest in environmental protection,
we expect that demand for hybrid vehicles will steadily increase. In
preparing to meet this demand, we are augmenting an advanced
development structure. This will enable us to develop not only
products for hybrid vehicles but also controllers for electric lift trucks,
power supply devices for hybrid lift trucks and others that will raise
the competitiveness of our materials handling equipment and textile
machinery. To expand our selection of automotive products, we areplanning to put more energy into the development of key components

34

Newly Developed DC-DC Converters for the
Toyota Camry Hybridin addition to the current lineup of auxiliary components such as

Fitted in TMC’s Prius, Toyota Industries’ DC-DC converters are key

mass production at a new plant in order to handle expansion of thedevices for hybrid vehicles. These converters down-convert the high-hybrid vehicle market.

Toyota Industries Corporation

Annual Report 2007

converters. We are also pressing forward with the preparations forAutomobile

Major Car Electronics Products

DC-DC converter for EPS

DC-DC converter for EPS

Fitted in the Harrier Hybrid (RX 400h)

Lexus LS

DC-AC inverter

DC-DC converter

Fitted in the Tacoma

Camry Hybrid

New products
DC-DC converters
for EPS

DC-DC converter

DC-DC converters

Fitted in the Prius

DC-AC inverters
FY

2003

2004

2005

2006

2007

2008

2011

Car Electronics

DC-DC converter for the Prius

DC-DC converter for electric
power steering for the Harrier
Hybrid (RX 400h)

DC-DC converter for
Camry Hybrid

DC-AC inverter for
the Tacoma (400W)

Manufacture and Quick Delivery of HighQuality Automotive Stamping Diesin recognition of the high quality of our stamping dies as well as our

Toyota Industries undertakes the design and manufacture of

We are also making important progress in bolstering our

automotive stamping dies mainly for TMC vehicles (Toyota andoverseas operations. Toyota Industries established Lio Fung Tool &Lexus brands) as well as stamping dies for our own lift trucks andDie (Kunshan) Co., Ltd. (LFTD, in which Toyota Industries has a 35%

other materials handling equipment. Combining advanced skills withstake) in Kunshan, China, as a joint venture with Taiwan-based Lioholeading-edge simulation technologies, Toyota Industries has earned

Machine Works, Ltd. LFTD produces stamping dies for TMC vehicles

high marks from customers for quick delivery times and top quality.

manufactured in China as well as for Toyota Industries lift trucks.

ongoing daily improvement activities.

In fiscal 2007, we won TMC’s Superior Quality Performance Award

Trim die for engine hood

Draw die for rear door

Toyota Industries Corporation

Annual Report 200735

Focus on Business

Logistics

Supporting the
Optimization of
Overall Logistics
Toyota Industries is engaged in proposing
optimal overall logistics solutions from
customers’ perspectives. We handle customers’
logistics by combining our extensive businessexperience in lift trucks, automated storage andretrieval systems and other materials handlingequipment with our production and logistics
know-how, as well as the Toyota Production
System cultivated in pursuit of the most efficientmethods of manufacturing. In so doing, we
propose so-called market-in logistics that supply
only “what is needed, when it is needed, and in
the amount needed!”36

Toyota Industries Corporation

Annual Report 2007

Logistics

Making Optimal Logistics Proposals as aGroup of Specialists

by discontinuing its policy of handling logistics internally. With the

In fiscal 2007, net sales of the Logistics Segment increased sharply

Industries and Nissen will work together in promoting mail-orderby 37% to ¥89.4 billion.

logistics reforms by optimizing the flow of the entire logistics process

Toyota Industries’ Logistics Business is centered on the threeacquisition of this stake in Mail & e Business Logistics, Toyota

from procurement to delivery to customers.

business pillars of planning, design and operation of distribution
parts. Planning, design and operation of distribution centers

Business Models Offering High Value-Added
Servicesare carried out mainly through the Advanced Logistics Division.

Toyota Industries regards logistics as a process that continues until aSpecifically, this business aims to reduce companies’ logistics costs

product passes the checkout counter at a retail store and is delivered

through Advanced Logistics Solutions Co., Ltd. (ALSO), a whollyto the customer. We are building proprietary business models

owned subsidiary, as well as through joint ventures with customers

that aim to optimize this overall flow, which involves not only theand logistics operators. Meanwhile, high value-added services aremanagement of the flow of “goods” but also the flow of “cash” andprovided through two subsidiaries, Asahi Security Co., Ltd. (Asahi

the flow of “information.”

centers, high value-added services and distribution of automotive

Security) and Wanbishi Archives Co., Ltd. (Wanbishi Archives),

As part of these efforts, Asahi Security, which became awhereas the Taikoh Transportation Group handles distribution ofsubsidiary in March 2005, offers cash management outsourcing

automotive parts.

services including cash collection and cash proceeds management

Since entering the logistics solutions field in 2002, we haveservices for the retail, services and transportation sectors. Wanbishi

achieved continuous growth and development. We intend to aim

Archives, in which we acquired a stake in January 2006, provides

for higher added value and efficiency. To this end, we are pursuinghighly advanced risk-related services that include storing andsynergies internally and externally by strengthening collaboration

managing important data for companies and government agencies

with the Materials Handling Equipment Business, which handles lift

and providing data backup services in the event of disasters. In May

trucks and automated storage and retrieval systems, as well as by2007, we raised our stake in Wanbishi Archives to 100%, making

sharing logistics businesses with our customers. In tandem, we areit a wholly owned subsidiary, as we aim to expand this business by

also focusing our efforts on reinforcing the earnings structure of thebenefiting from such trends as the implementation of the Japanese

Logistics Business through continuous improvements.

version of the U.S. Sarbanes-Oxley Act (J-SOX) and the Personal

In fiscal 2007, we acquired a 50.5% stake from Nissen Co., Ltd.
(Nissen), a leading mail-order company, in Nissen Logistics Service

Information Protection Act.
Using these wide-reaching service-related technologies asCo., Ltd., which became a subsidiary and was renamed Mail &a foundation, we are firmly poised to expand the scope of oure Business Logistics Service Co., Ltd. (Mail & e Business Logistics).

high value-added services that address the outsourcing needs ofThis move reflects Nissen’s decision to utilize Toyota Industries’

companies.

logistics solutions in an effort to improve this area of operations

Business Model for Wanbishi Archives
Customer

Wanbishi Archives

Storage center

Request for storage

FAX・TEL
Searched
documents

Request for retrieval
and/or delivery of
required documents

Receiving requests
Internet

Distribution by e-mailor fax (or via Website)

Retrieve
Digitization

Document boxes

Mail distribution

PC

Ledgers/
sales promotion
materials

High-volume digitization

DeliveryStorage/deliveryWorksite

Delivery

Data
Destruction andrecycling center
Data destruction

Transportation

Unnecessary
documents

Toyota Industries Corporation

Annual Report 200737

Focus on BusinessTextile Machinery

Sales of Air-Jet
Looms Surpass
10,000 Units to an
All-Time HighThe history of the Toyota Group began with theinvention of an automatic weaving machine by
Toyota Industries founder Sakichi Toyoda. Witha long history dating back to the origin of Toyota
Industries, the Textile Machinery Business, as anindustry leader, has built an integrated structurethat encompasses functions ranging fromdevelopment to sales. Our air-jet looms havemaintained the top global market share, while
our ring spinning frames, roving frames andother spinning machinery have garnered highacclaim from customers worldwide.

38

Toyota Industries Corporation

Annual Report 2007

Textile Machinery

Weaving Machinery

demand subsequently surged to over 20,000 units from aroundToyota Industries manufactures and sells two types of weaving

2002. This increase was driven by a confluence of several factors,

machinery: air-jet looms, which insert weft yarns using air, and water-

including improvements in productivity for our air-jet looms andjet looms, which use water for the same purpose. Our state-of-the-development of air-jet looms that enable the production of woven

art weaving machinery, excellent in basic performance requirements

fabrics previously difficult to produce, in addition to a shift in textile

for high speed and reliability, incorporates such advanced functions

production to China. Consequently, Toyota Industries supplied

as monitoring and remote setting via the Internet, earning high praiseroughly half of all global demand in fiscal 2007. In March 2007, wefrom customers around the world.

further expanded our product offerings when we initiated production

In fiscal 2007, sales of air-jet looms, our mainstay product,of a new water-jet loom. Rounding out our product lineup, we alsoreached a record-high 10,600 units, supported by a large increase

manufacture and sell such preparatory machinery for weaving as

in sales in China. Up until roughly five years ago, total worldwide

sizing machines for yarns.

demand for air-jet looms stood at around 10,000 units, but this

Weaving Machinery

JAT710 air-jet loom

LWT710 water-jet loom

Spinning Machinery

MackeeSizing machine for spun yarn

Filamaster
Sizing machine for filament yarn

also produce and sell combers and drawing frames.

The Spinning Machinery Business meets a broad range of customer

Overseas, Kirloskar Toyoda Textile Machinery Private Limited

needs by offering an extensive lineup of spinning machinery, including(KTTM), our subsidiary in India, manufactures ring spinning frames forhigh-speed ring spinning frames and roving frames, capable of boththe local market.

spinning high-quality yarns and providing superior productivity. We

Spinning Machinery

RX240NEW ring spinning frame

FL100 roving frame

DX8 drawing frame

VC5A comber

TopicsKTTM Marks its 10th Anniversary
In 2006, KTTM marked the 10th anniversary of its establishment in India. Founded
as a joint venture with India’s Kirloskar Group, KTTM began production and sales ofspinning frames in 1997. In 2004, KTTM commenced production of aluminum diecast components for manual transmissions for Toyota Motor Corporation’s Innovative
International Multi-Purpose Vehicle Project. KTTM further expanded its scope ofactivities in 2006 when it began engaging in after-service and sales of lift trucks in the
Bangalore District.

Toyota Industries Corporation

Annual Report 2007

39

Focus on BusinessElectronics

On the Cutting Edgeof Providing HighQuality Electronics
Products
Toyota Industries engages in the manufactureof semiconductor package substrates through
TIBC Corporation (TIBC)*1. We are also actively
involved in the manufacture of low-temperaturepolysilicon TFT-LCD panels at ST Liquid Crystal
Display Corp. (STLCD)*2 and ST Mobile DisplayCo., Ltd. (STMD)*3. Utilizing our expertise rooted
in the Toyota Production System—a sourceof Toyota Industries’ competitiveness—wequickly provide a stable supply of high-quality
electronics products.
*1
A joint venture with Ibiden Co., Ltd. (Ibiden)*2, *3 Joint ventures with Sony Corporation (Sony) accounted for as equity-method affiliates,with Toyota Industries holding a 50% stake in STLCD and a 20% stake in STMD.

40

Toyota Industries Corporation

Annual Report 2007

Electronics

Plastic Package Substrates forHigh-Performance Semiconductors andSubstrates for IC Cards

performance products by achieving synergies derived from thequality management and production technology capabilities of Toyota
Industries and Ibiden, an industry leader in this field.
TIBC’s semiconductor plastic package substrates are sold

TIBC manufactures leading-edge semiconductor package
substrates to enable more compact, lighter weight PCs, mobile

through Ibiden to the world’s premier semiconductor manufacturers

phones and other electronic devices. Specifically, TIBC currently

and semiconductor-packaging companies for such applications as

manufactures plastic package substrates, including flip chip (FC)

PCs and mobile phones. At the same time, TIBC’s FPC substrates

package substrates and wire bonding package substrates, for high-are also marketed through Ibiden to SIM card and smart card

performance semiconductors, as well as flexible printed circuit (FPC)

suppliers mainly in Europe and China for integration into credit cards

substrates for IC cards. TIBC is able to supply high-quality, high-and telephone cards.

TIBC

Wire bonding
package substrate

Flip chippackage substrate

Low-Temperature Polysilicon TFT-LCD Panels
for Mobile Devices
STLCD and STMD manufacture small- and medium-sized low-

Flexible printed circuit
package substratecompanies are used in the mobile devices of Sony and other hightech device manufacturers worldwide.
Since commencing mass production in 1999, STLCD has

temperature polysilicon (poly-Si) TFT-LCD panels, primarily for suchachieved cumulative production of 200 million panels as of August

applications as video and digital still cameras, and mobile phones.

2006. STMD, our second manufacturing base after STLCD, began

These TFT-LCD panels are noted for such outstanding basic features

mass production of panels on schedule in April 2006.

as high-quality, high-resolution images and low energy consumption.
In addition, Sony is promoting its system-on-glass technology that
integrates the display device and its driver circuits onto a single glass
substrate (panel). This technology enables highly reliable, lightweightand miniaturized display modules, and in turn contributes to bothcompanies’ proactive efforts to develop display devices for compact,
lightweight mobile products.
Through synergies that fully utilize Sony’s technologicalcapabilities and Toyota Industries’ production technologies, STLCD
and STMD have built optimal production systems for creating
globally competitive products. The products manufactured by these

ST Liquid Crystal Display Corp.

STLCD

Low-temperature polysilicon TFT-LCDs

Toyota Industries Corporation

Annual Report 200741