TOYOTA AND THAI FIRMS SIGN AGREEMENT ON JOINT VENTURE FOR ENGINE
PRODUCTION IN THAILAND

Toyota City―TOYOTA MOTOR CORPORATION, the Siam Cement Co., Ltd., the Industrial Finance Corporation of Thailand and Nippon Denso Thailand Co., Ltd. today signed a joint agreement to establish a new company to manufacture automobile engines in Thailand.

The new company, Siam Toyota Co., Ltd., is scheduled to be incorporated in mid-July of this year, and will act as a stable source of engines for the Toyota Hilux pickups already being manufactured in Thailand. The project represents a commitment on Toyota's part to cooperate with the industrial policies of the Thai government.

Siam Toyota Manufacturing Co., Ltd. will be located in the Latkrabang Industrial Estate, Authority of Thailand, Bangkok, and capitalized at 150 million baht (about 900 million yen). Shareholders will include The Siam Cement Co., Ltd. (40%), the Industrial Finance Corporation of Thailand (10%), Nippon Denso Thailand Co., Ltd. (10%) and Toyota Motor Corporation (40%). Total investment in the new company will be approximately 1 billion baht (about 6 billion yen).

Senator Paron Israsena Naayuthaya, president of the Siam Cement Co., Ltd. and chairman of the Association of Thai Industries, will be the non-regular chairman of the board. The non-regular vice chairman will be the managing director of Toyota Motor Corporation, Masaharu Tanaka, and President Yoshikazu Nanbu of Toyota Motor Thailand Co., Ltd. will take office as president.

At full two-shift production, the new company is to manufacture, assemble and market 2,000 units of the 2.4-liter diesel, and 2.0-liter gasoline engines for Toyota Hilux pickups per month.
It will employ 60 to 70 people within two to three years of the start of operations, scheduled for mid-1989, to increase to about 200 within five years.

Export provisions are over 500 million baht (about 3 billion yen) for the first 5 years and 100 million baht (about 600 million yen) per year thereafter.

The agreement was signed on the afternoon of Friday, June 12 at the Bangkok Hilton Hotel, with a press conference immediately afterward. Present at the ceremony were Pong Sarasin, Vice Premier of Thailand, Akitane Kiuchi, Japanese Ambassador to Thailand, Paron Israsena Naayuthaya, president of the Siam Cement Co., Ltd., Masaharu Tanaka, managing director of Toyota Motor Corporation, and guests.