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Yamaha Motor Co., Ltd. and Toyota Tsusho Corporation have agreed to establish a new company in Cambodia for the manufacture and marketing of motorcycles with the aim of strengthening the foundation of the motorcycle business in the Cambodian market. The new company will begin operations on October 1, 2008.
The name of the new company is Yamaha Motor Cambodia Co., Ltd. (YMKH) and its starting capital of 11,500,000 US dollars (approx. 1.2 billion yen) is invested 70% by Yamaha Motor, 20% by Toyota Tsusho and 10% by Cambodia's Kong Nuon Import & Export Co., Ltd. plans call for the company to be officially established on August 31, 2008.
Since March 2007, Asia Motors Co., Ltd. (AMC), a joint venture company between Toyota Tsusho and Kong Nuon Import & Export, has been assembling and marketing motorcycles with parts and components supplied as semi knocked-down (SKD)* kits by Thai Yamaha Motor Co., Ltd. The new company YMKH will begin operations by taking over operations at the AMC factory and the AMC sales network and a 94,890m2 lot will be acquired in Phnom Penh's special economic zone for the construction of a new factory.
The aims of the new factory will be to reduce costs and lead time through complete knock-down (CKD) manufacturing, and plans call for operations to begin at the completed new factory in July 2009.
Plans call for AMC to be dissolved following the transfer of operations to YMKH at the end of September 2008.
Yamaha Motor and Toyota Tsusho have a solid record of corporate collaboration beginning with an importer/distributor in Kenya in 1989 and subsequent tie-ups that have included distributorships and dealerships for Yamaha Motor products in the South Pacific, Kazakhstan and Russia. YMKH represents an initiative to strengthen the motorcycle business in Cambodia drawing from the synergy of Yamaha Motor's expertise in manufacturing and marketing, Toyota Tsusho's logistical strengths and Kong Nuon Import & Export's expertise in building sales networks. This new company represents the first establishment of a new joint venture company by Yamaha Motor and Toyota Tsusho.
The current economic growth in Cambodia is supporting a trend of growing demand for motorcycles, which reached 130,000 units in 2007. The outlook of stable economic growth for the future and the size of the young demographic that will be potential motorcycle users point to continued growth in motorcycle demand, with forecasts of 250,000 units by 2010 and 500,000 units by 2015.
Initial targets for the new company are to expand motorcycle sales to 30,000 units at a value of 4.2 billion yen planned for 2010 after the start of production at the new factory by introducing attractive products, strengthening the sales network with examples provided by directly-managed Yamaha dealerships and promoting the Yamaha brand.
*Semi knocked down is a manufacturing method that involves the import/export of semi-complete kits of knock-down parts that have already been assembled to some degree. |
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About Yamaha Motor Cambodia Co., Ltd. (YMKH) |
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| Location: |
Phnom Penh, Cambodia |
| Founding date: |
August 31, 2008 |
| Start of Operations: |
October 1, 2008 |
| Headed by: |
Michifumi Matoba, Managing Director |
| Capital: |
11.5 million US dollar (approx. 1.2 billion yen) |
| Investment ratio: |
| Yamaha Motor Co., Ltd. |
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(70%) |
| Toyota Tsusho Corporation |
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(20%) |
| Kong Nuon Import & Export Co., Ltd. |
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(10%) |
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| Business: |
Manufacture and marketing of Yamaha motorcycles |
| Employees: |
50 (initially) |
| Scale of business: |
Motorcycle sales volume; 30,000 units planned for 2010
Sales; 4.2 billion yen planned for 2010 |
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About Yamaha Motor Co., Ltd. |
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| Location: |
2500 Shingai, Iwata, Shizuoka, Japan |
| Founded: |
July 1, 1955 |
| Headed by: |
Takashi Kajikawa, President and CEO |
| Capital: |
48,300 million yen (as of December 31, 2007) |
| Scale of business: |
Consolidated sales of 1,756,707 million yen (as of December 31, 2007) |
| Employees (Consolidated): |
46,850 (as of December 31, 2007) |
| Business: |
Manufacture and marketing of motorcycles, outboard motors, boats, personal watercraft, 4-wheel ATVs, side-by-side vehicles, snowmobiles, automotive engines, surface mounters, etc. |
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About Toyota Tsusho Corporation |
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| Location: |
9-8, Meieki 4-chome, Nakamura-ku, Nagoya, Japan |
| Founded: |
July 1, 1948 |
| Headed by: |
Junzo Shimizu, President |
| Capital: |
64,936 million yen (as of March 31, 2008) |
| Scale of business: |
Consolidated sales of 7,000,352 million yen (as of March 31, 2008) |
| Employees (Consolidated): |
26,121 (as of March 31, 2008) |
| Business: |
Domestic and international trade of various products and commodities, import/export, third country trade, construction contracting, insurance agency operations, etc. |
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Correlation Chart of Yamaha Motorcycle Business in Cambodia |
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