Section 4. Establishment of Toyoda Automatic Loom Works, Ltd.

Item 1. Toyoda Automatic Loom Works Established

Mass production of Type G Automatic Loom begins

A large number of orders for the high-performance Type G Automatic Looms were expected, but the Hioki-cho workshop was small with only about 1,650 square meters of area and was not suitable for mass production. Kiichiro Toyoda's father Sakichi had given instructions, and in February 1926 Kiichiro proposed the construction of a new plant in Kariya.

Sakichi's instructions were to build a plant capable of producing 500 units of the Type G Automatic Looms per month, but Kiichiro carefully considered the opinions within the company urging caution and prepared two proposals for monthly production of 500 units and 250 units.1 A list of orders for machine tools prepared by Kiichiro in June 1926 included special-order machine tools and high-performance imported equipment, and the installation of electric furnaces and molding machines suitable for high-quality casting was considered for the casting facilities. The first phase of construction began in July.

In conjunction with the construction of the new plant, Toyoda Automatic Loom Works, Ltd. (TALW) was established as an automatic loom manufacturing company. Establishment of the new company was proposed and approved at a general shareholders meeting of Toyoda Boshoku Corporation on April 26, 1926, and TALW was established in Kariya on November 18. The basic details of the company are as follows:

2-1 Aza Yuk, Oaza Kuma, Kariya-cho, Hekikai-gun, Aichi Prefecture
1 million yen (250,000 yen paid)
President: Risaburo Toyoda; Managing Director: Kiichiro Toyoda
Akiji Nishikawa, Rizo Suzuki, Risaburo Oshima
Corporate auditors:
Sasuke Toyoda, Tokiya Murano

The Kariya Plant was under construction at the time of establishment of TALW, and as a result, the Type G Automatic Looms continued to be produced at Toyoda Boshoku's Hioki-cho Repair Plant. Later, the second phase of construction, primarily an assembly plant, began in March 1927 and was mostly completed by June.2 Full-scale production with monthly capacity of 300 units began from this.3

Looking back on the entry into the automatic loom manufacturing business, prototypes were first produced at Toyoda Boshoku's workshop followed by integrated production of the Type G Automatic Loom, a completed model, at the small-scale Hioki-cho Repair Plant. Later, mass production (300 units per month) was achieved at TALW's new loom plant, and production was expanded to 1,000 units per month.

This method of increasing production capacity in stages while acquiring production technologies was later adopted at the time of entry into the automotive industry.

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