Toshiba's new Joint Venture in China to Produce Elevators and Escalators|
16 May, 1995
TOKYO -- Toshiba Corporation has entered an agreement with Shenyang Elevator Works, one of China's leading domestic producers of elevators and escalators, to establish a joint manufacturing company in Shenyang, capital of Lianoing Province.
Following formal approval from the Chinese government, the joint venture, Shenyang Toshiba Elevator Company Limited, will be incorporated in July, 1995. The company will have three investors: Toshiba (US$8 million), Toshiba Elevator Technos Co., Ltd., a Japan-based Toshiba subsidiary for after sales service and maintenance company, ($2 million) and Shenyang Elevator Works ($5 million).
Under the terms of the agreement, Shenyang Toshiba Elevator Company Limited will invest a total of $24 million in the next four years, adding advanced production equipment to Shenyang Elevator Works' current facilites.
Toshiba will provide wide-ranging technical support and technology transfers to the joint venture. The production will start in January, 1996 with the capacity of 1,000 elevators and escalators a year, which will be expanded to 3,000 units by 2000. The joint venture is expected to have 900 employees at the time of production start. Most output will go the China's domestic market, with some going to the overseas market.
The construction boom that has accompanied China's recent economic expansion has made the country the world's fastest growing market for elevators and escalators. The current market of 23,000 units a year is expected to grow to some 40,000 units by 2000. The new manufacturing joint venture will allow Toshiba to establish a solid foundation to support development of the market and provide a better response to customer needs than is possible with only a marketing operation.
Outline of the new company
Company name: Shenyang Toshiba Elevator Company Limited Location: Shenyang, Liaoning Province, China Founded: July, 1995 (Planned) Capital: $15 million Employees: 900
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