Capital and business alliance to drive expansion in Southeast Asia and North America by utilizing Vietnamese production capability
Tokyo – TOPPAN Holdings Inc. entered into a capital and business alliance agreement with JOYFUL Co., Ltd., a Vietnamese printer of decorative surfacing materials, in July 2023 to drive global development of the decorative surfacing materials business. After receiving approval from the Vietnamese authorities in October, the two companies are launching full-scale collaboration, including sales and marketing activities, in November.
Background and Objectives
In recent years, the ASEAN market has become one of the world's largest consumer markets for a variety of products. It has also become an export base for developed countries due to its diverse manufacturing and labor resources and is experiencing rapid economic growth and development. In the furniture industry, manufacturing and outsourcing locations serving mainly European and American furniture manufacturers are now dispersed throughout countries and regions outside China, which is becoming increasingly important to support the furniture industry in the ASEAN region.
TOPPAN Holdings executed a design license agreement with JOYFUL in 2019, granting JOYFUL the right to use certain designs of the TOPPAN Group and kicking off a collaborative relationship. Based on the existing license agreement, JOYFUL prints and supplies decorative papers and films for lamination on the surface of furniture and interior components.
With the new collaborative agreement, the two companies will further strengthen their existing production capabilities based on the design license and expand business in the ASEAN region as partners in production and sales of decorative papers and films for furniture and interior components.
Details of the Agreement
The TOPPAN Group's strengths include design development, technological capabilities, and a global platform in the field of decorative surfacing materials. JOYFUL's strengths, meanwhile, include its decorative paper and film production capabilities in Vietnam and its business network in the ASEAN region. Through the business alliance agreement, the two companies will combine their strengths and know-how to enhance the quality and value of the products they offer and further expand their existing licensed production business for decorative papers and films.
TOPPAN Holdings Inc. will also expand its business through the Environmental Design division of TOPPAN Inc. (headquartered in Tokyo, Japan), as well as Toppan Interamerica Inc. (headquartered in Georgia, USA), Toppan Europe GmbH (headquartered in Düsseldorf, Germany), and INTERPRINT GmbH (headquartered in Arnsberg, Germany), all of which are also group companies. The TOPPAN Group's global network and JOYFUL's local production capabilities will help meet the strong demand for furniture and interior components in the ASEAN and North American markets and support the domestic and export business of local ASEAN furniture manufacturers and other companies.
Due to global supply constraints and geopolitical factors, the decorative surfacing materials market is moving toward diversification of suppliers, optimization of procurement costs, and local production for local consumption. TOPPAN Holdings and JOYFUL will provide customers with optimal solutions aligned with these trends by strengthening their existing global platforms. At the same time, both parties will enhance their production capability and product value by improving productivity and strengthening quality control, as well as developing new products in the medium to long term.