Ishikawajima-Harima Heavy Industries Co. said Tuesday it has agreed with Toyota Motor Corp. to form a joint venture in Thailand for the manufacture and marketing of turbochargers there next spring.
The new company, tentatively named IHI Turbo Thai, will be owned 90 percent by the heavy machinery maker and the remainder by Toyota, IHI said in a press release.
The capitalization of the new company has not been decided, IHI said.
IHI said the deal reflects an expected increase in demand for turbochargers in Thailand following a decision by Toyota to produce more than 100,000 turbocharged engines a year there.
IHI supplies turbochargers to Isuzu Motors Ltd. and Mazda Motor Corp. for use in pickup trucks sold in Thailand.