INTERNATIONAL BUSINESS
Saturday, April 10, 2004
Toshiba to set up AC compressor venture in China
AFP
TOKYO: Japanese electronics giant Toshiba on Thursday said it would set up a joint venture with a partner in southern China to make compressors for air conditioners on the back of rising demand.
Toshiba's air conditioner subsidiary, Toshiba Carrier, is to team up with Chinese home appliance giant GD Midea Holding to create the venture, capitalised at USD 8.6 million, in Guangdong province by the end of the year.
"The move is in line with growing demand for air conditioners in China," said Akinori Nakashima, a spokesman for Toshiba Carrier, adding China was the world's biggest market for home air conditioners with annual demand reaching 10 million units.
Toshiba will take a 40 per cent stake in the venture with the Chinese company taking the balance. The venture will then build a plant in Guangdong with production expected to start early in 2005.
The plant will have annual production capacity of one million units, but Toshiba and Midea plan to raise it to three million over the next three years by investing some 4.2 billion yen, the spokesman said.
Toshiba is also considering setting up two more joint ventures with Midea to make air conditioners and market them in China, the spokesman said, but added that no concrete details have yet been decided.
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