Toshiba Corporation Established A China Joint Venture to Manufacture And Market Color Television Sets|
10 September, 1996
TOKYO -- Toshiba Corporation today announced that it has entered into agreements with Chinese partners and Nichimen Corp. to establish a joint venture company to manufacture and market color television sets (CTVs) in Dalian, China.
Investment in the new facility acounts to approximately US$ 98.1 million. The establishment will assure Toshiba of a solid manufacturing and marketing base for color television sets to address the strong growth of demand anticipated in China, and to supply other fast-growing Asian countries.
Dalian Toshiba Television Co., Ltd. (DTV), the color TV plant, will have an initial capitalization of US$49.1 million, 52 percent owned by Toshiba Corp., 13 percent by Toshiba (China) Co., Ltd., 5 percent by Nichimen Corp. and 30 percent by Dalian Daxian Group Corp. The procedures to establish the JV were completed in last July. DTV's facilities, including a product design and development center, will be located on a plot next to Toshiba's Dalian facility for manufacturing electronic components, Toshiba Dalian Co., Ltd. (TDL).
Construction will start in October 1996 and manufacturing is scheduled to begin in October 1997. The plant will have a production capacity of 1 million units a year, and a product line-up of 21-inch to 29-inch CTV. Output will be sold in China and also exported, mainly to other Asian countries.
Market Growth Expected
The worldwide CTV market reached 109.6 million units last year, and is expected to enjoy steady growth to 112 million units this year. Particularly strong growth is expected in the Chinese market, with high growth rates pushing demand to 15 million units in 1995 and 20 million in 2000. It is expected to match the U.S. market in size by 2000.
Toshiba's Facilities Worldwide
Toshiba is establishing a global network of CTV manufacturing and marketing facilities based in key markets including Japan, North and Latin America, Europe and Asia. In fiscal year 1995, the company's facilities worldwide sold approximately 6.1 million units.
Toshiba is establishing the new facility in Dalian: (1) to assure a manufacturing and marketing operation supporting production of products to meet demand from the Chinese market; (2) and because TDL already produces key CTV components in Dalian, including TV chassis and tuners, which provides a basis to create mutual effect for Toshiba Group by extending overall manufacturing operation and procurement in the region.
Toshiba develops and produces a wide range of products in order to meet diverse demands in different markets. The company is currently enhancing all aspects of its global manufacturing operation structure, from procurement to assembly, with consideration for such factors as market size, costs and labor availability, etc. The establishment of the new company fits into this worldwide strategy, and also allows Toshiba to promote Sino-Japanese cooperation through business.
Outline of China Partner
|Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.|