To be capitalized at 2 billion yen, Asahi Glass will spin off its operations of ceramic-based exterior siding boards on December 1 of this year and establish a new company.The new company will be temporarily operated by wholly owned subsidiary Asahi Glass Exterior Siding boards Co., Ltd.
On January 5, 2005, Tostem will acquire a 50% stake from Asahi Glass in the new company and operate it jointly with Asahi Glass.
Asahi Tostem Wall will sell ceramic-based exterior siding boards produced in its own facilities as well as buy and sell Tostem's ceramic- and metal-based materials and INAX Corporation's tile-based materials.
The move comes about due to deteriorating market conditions, and a need for both comapnies to consolidate their operations with a business partner. With two routes serving different customer strata, Asahi Glass and Tostem expect to increase sales by leveraging the synergy effect obtained from the operational integration while mutually complementing what each party lacks.