Toyota Expands Its Asian Forklift Business with New Acquisition

Toyota’s purchase of a controlling share of one of Asia’s largest forklift companies represents an aggressive move into the rapidly growing Asian forklift market.┬áThe recent purchase of 55% of Tailift Co.’s forklift division for $83 million gives the Japanese conglomerate a higher profile in the Asian forklift market.

Under the agreement — which was announced September 29 by TICO president Akira Onishi — Tailift’s forklift business will be spun off into a new jointly-operated business.┬áThe acquisition means Toyota will gain new manufacturing plans in Asia to shore up its efforts to expand its strength in developing, manufacturing and selling forklifts in the rapidly growing region, according to a statement issued by TICO to the webite SHD Logistics.

“This acquisition is clearly a part of TICO’s strategy to achieve Vision 2020,” the statement reads. “TICO sees Tailift as an important partner in capturing emerging markets to increase our share of markets through the synergies after this acquisition. TICO has ranked No.1 in material handling market since 2001 and intends to maximize synergy by leveraging the strengths of both companies and increase further growth of the forklift business in the world market.”

The new company will continue to be run by current Tailift president & CEO Steve Lin until 2020, when he is expected to retire at the age of 70.

Tailift is headquartered in Taichung, Tawian, and was established in 1973. It produces about 28,000 forklifts per year and has about 1,000 employees. IN addition to forklifts, the company also makes laser cutting machines and other industrial machine tools.