Toyota Industries China Compressor Production Reorganization

Toyota Industries China Compressor Production Reorganization

On August 26, Toyota Industries Corporation announced a reorganization of its car air-conditioning compressor production structure in China. The company plans to consolidate the production functions of TD Automotive Compressor Kunshan Co., Ltd. (TACK), located in Kunshan, Jiangsu Province, into Yantai Shougang TD Automotive Compressor Co., Ltd. (YST), located in Yantai, Shandong Province. The move is intended to streamline production operations while strengthening the company’s manufacturing capabilities and competitiveness in the Chinese compressor business.

TACK Production to End in July 2027

TACK is scheduled to end production in July 2027. Following the production shutdown, Toyota Industries Corporation will proceed with procedures to dissolve the company. The production functions currently handled by TACK will be consolidated into YST in Yantai, creating a more centralized production structure for Toyota Industries’ car air-conditioning compressor operations in China. The company expects this consolidation to improve production efficiency while supporting stronger technological development and quality assurance systems across its compressor business.

Focus on Efficiency, Technology and Competitiveness

The production restructuring is designed to deliver several operational benefits for Toyota Industries’ compressor business in China. By consolidating manufacturing functions, the company aims to improve production efficiency and strengthen its technological development capabilities. Toyota Industries also expects the revised structure to reinforce quality assurance systems, supporting consistent manufacturing performance as production activities are concentrated at YST. Together, these measures are intended to enhance the competitiveness of the company’s compressor business in China while establishing a more streamlined production organization following the planned closure of TACK.

Frequently Asked Questions

Why is Toyota Industries reorganizing its compressor production in China?
Toyota Industries is reorganizing its China compressor production structure to improve production efficiency, strengthen technological development, reinforce quality assurance systems, and enhance the competitiveness of its compressor business. The company will consolidate the production functions of TD Automotive Compressor Kunshan Co., Ltd. (TACK) in Kunshan, Jiangsu Province, into Yantai Shougang TD Automotive Compressor Co., Ltd. (YST) in Yantai, Shandong Province. TACK is scheduled to end production in July 2027, after which Toyota Industries will proceed with procedures to dissolve the company and continue production through the consolidated structure at YST.