Toshiba Corp. said on Thursday that it will set up a joint venture with Chinese white goods maker Wuxi Little Swan Co. to market washing machines in China.
The move is said to mark Toshiba's first manufacturing of white goods in China, where the company claims that demand for such products is rapidly increasing.
The washing machines will be developed and designed in Japan and manufactured in China by Toshiba Washing Machine (Wuxi) Co., Ltd., a joint venture between Toshiba and Wuxi Little Swan. Following formal signing of the agreement between the two partners today in Wuxi Jiangsu, China, the new joint venture will be incorporated in January 2003. It will undertake the manufacture, sales, and after-sales service of washing machines and clothes dryers, their main parts, and accessories.
Toshiba Washing Machine (Wuxi) Co., Ltd. will have complete access to Toshiba's technological and manufacturing capabilities and bring them to products targeting mid- to high-income consumers, Toshiba said.
Department stores and other outlets in China's coastal fringe will provide the main sales channel, and the company anticipates sales of 100,000 units in the first year of operation, rising to 700,000 units in 2005.
to Daily News