Toshiba and TCL to Set Up Two Home Appliance Joint Ventures
Nov 4, 2004
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Toshiba Corp. said on it would cooperate with TCL International Holdings Ltd. of China to produce and sell home appliances, becoming the latest Japanese company to tap rapidly expanding demand in the Chinese market.
Toshiba, Japan's second largest electronics conglomerate, said it and TCL, said to be the world's top TV maker, would build a manufacturing plant in the southern province of Guangdong to make refrigerators and washing machines starting in January 2006.
Toshiba and TCL plan to set up two joint ventures, one for manufacturing and the other for sales, investing a total U.S. $50 million, a spokesman at Toshiba's home appliance subsidiary said.
Toshiba will take a stake of about 70 percent in the manufacturing joint venture, while the sales venture will be held 51 percent by TCL, a spokesman at Toshiba's home appliance subsidiary said.
Toshiba's move follows an announcement last month by Matsushita Electric Industrial Co. Ltd., the maker of Panasonic brand products, that it would build a major home appliance manufacturing complex in Zhejiang province in eastern China. (Reuters)
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