Toshiba Corp. of Japan and Chinese home appliance maker GD Midea Holdings Co. have agreed to form four joint ventures, with the Japanese electronics giant taking a 20-percent stake in four of its partner's subsidiaries, the companies said.
The deal, valued at 280 million yuan (approx. U.S. $33.9 million), will give Toshiba Carrier -- a joint venture between Toshiba and the heating and cooling equipment maker Carrier Corp. of Farmington, CT, U.S. -- stakes in four air-conditioner businesses owned by Midea, the companies said in written statements.
The Toshiba-Midea ventures will make air-conditioners for home and commercial use, Midea said.
Like many other Japanese manufacturers, Toshiba has been scaling back production in Japan and shifting to factories in China.
The joint ventures are expected to turn out 10 million air-conditioners under the Midea brand and 400,000 under the Toshiba brand in 2005, Toshiba said. By 2008, output is expected to rise to 17 million Midea brand and 1 million Toshiba brand units.
Midea, which is based in south China's Guangdong province, and Toshiba Carrier already have two joint ventures making air-conditioner compressors.
Midea, founded in 1968, also makes dishwashers, microwave ovens, electric fans, rice cookers, electric heaters, and vacuum cleaners, among other home appliances. (AP)
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