Toyota Tsusho Corporation (Toyota Tsusho) has announced that it has established a vehicle production company and acquired a licence for a vehicle assembly plant in Ghana.
This is a first for a Japanese company in the country.
The planned production capacity of the new plant is 1,300 units annually, and the plant will conduct semi-knocked-down (SKD) production of the Toyota Hilux pick-up truck.
Semi-knock-down (SKD) is a simple method of vehicle assembly which requires only tightening of bolts and similar processes, unlike complete knock-down (CKD) production.
The new plant will be built in Tema at an investment cost of about US$7 million, and there are plans to hire approximately 50 workers to run it.
According to Toyota, preparations are under way to commence operations in mid-2021.
Toyota Tsusho took over general business and operations in Africa from Toyota Motor Corporation in January 2019 and has been reinforcing Toyota’s initiatives in Africa.
With the establishment of the Toyota Tsusho Manufacturing Ghana Co Ltd (TTMG), the Toyota Tsusho Group will have vehicle production sites in five African countries, following its launch in Egypt, Kenya, Nigeria and Rwanda.
In addition to engaging in the automobile sales business, the company will perform local production tailored to market needs, contributing to the development of the automobile industry in Africa.
This project is being implemented pursuant to the memorandum of understanding regarding a partnership for the development of the automotive industry executed by Toyota Tsusho and the Government of Ghana at the seventh Tokyo International Conference on African Development (TICAD7), which was held in Yokohama in August 2019.