Toshiba Sets Up Manufacturing JV for Transformers in China|
11 July, 1995
TOKYO -- Toshiba Corporation announced today that it will launch a joint venture company in China to produce extra high voltage- type transformers for power transmission systems. The new facility is Toshiba's first full-scale investment in China in the power-supply-related business.
Transformers are a key component of substations, where they step down the voltage of electricity delivered from remote power stations prior to local distribution.
Toshiba has entered into an agreement with Changzhou Tranformer Works, a leading Chinese manufacturer of transformers, and Mitsui & Co., Ltd., a major Japanese trading firm, to establish a joint venture company, Changzhou Toshiba Transformer Co.,Ltd., in Changzhou, Jiangsu Province. The new company will be incorporated in September, 1995, with an initial capitalization of US$18 million. 56% of the shares issue will be taken up by Toshiba Corp., 39% by Changzhou Transformer Works and 5% by Mitsui & Co.
Changzhou Toshiba will start construction of a manufacturing facility by the end of this year, with completion expected by spring 1997. The site is in close proximity to the Changjang River, facilitating water transport of the large, heavy transformers that are costly to transport. The plant's total annual capacity will be a sum of 7 million kilovolt ampere (*1), most of which will be marketed in China. Toshiba will transfer advanced technology for manufacturing transformers to the joint venture.
Under its economic expansion plan, China is planning to rapidly reinforce its electricity supply grid. The pace of development is expected to be in the order of 20 million kilowatts a year (*2). The new company is expected to make a positive contribution to the development of China's power transmission system.
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