As wartime destruction expanded, cotton trading was suspended and the operations of spinning and weaving companies were unavoidably curtailed. In response, Toyoda-related companies were reorganized, and on March 11, 1942 Toyoda Boshoku Corporation and Toyoda Oshikiri Boshoku Corporation merged with three other Toyo Menka-related companies-Chuo Boshoku Co., Utsumi Boshoku, and Kyowa Boseki-to establish Chuo Spinning Company.1

The Cabinet adopted the Military Capacity Enhancement Corporate Reorganization Guidelines on June 1, 1943, and corporate reorganization was implemented so that the plants, equipment, and labor force of the spinning and other industries could be diverted to military industries. In accordance with this policy, the Ministry of Commerce and Industry adopted the Cotton and Staple Fiber Spinning Industry Reorganization Guidelines on August 5, and the full-scale diversion of the cotton and staple fiber spinning industry to military industries began.

Toyota Motor Co., Ltd. was asked to manufacture aircraft engines in January 1943, and to fulfill this request, a decision was made to make use of the management resources of Chuo Spinning Company and to merge the two companies. Toyota Motor and Chuo Spinning each held extraordinary general shareholders meetings on September 10 and approved the merger, which was implemented on November 3.

Of the plants acquired from Chuo Spinning Company, the Kariya-kita Plant, Kariya-minami Plant, and Aichi Plant (later the Nakagawa Plant) were modified at a cost of 10 million yen and the plants were used to manufacture aircraft engines and engine parts.