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Toshiba Group Restructures Copier Business to Advance Business and take Advantage of Emerging Trends in Digitization

27 August, 1998


Toshiba Corporation
TEC Corporation
Toshiba Lighting & Technology Corporation

Tokyo--Toshiba Corporation and TEC Corporation, one of the leading members of the Toshiba Group companies, today jointly announced a major restructure, under which Toshiba's plain paper copier business will be transferred to TEC on January 1, 1999. The integration reflects the key trend in the office equipment market, the digital convergence of the image processing technologies used in copiers, facsimiles and printers.

In carrying out the transfer, TEC will raise its capitalization, and Toshiba will increase its investment in the company to over 50 percent. TEC will also rename itself, becoming Toshiba TEC Corporation. At the same time, TEC will transfer its lighting fixture manufacturing business to Toshiba Lighting & Technology Corporation, also on January 1, 1999. This extensive restructure will reinforce Toshiba Group's capabilities. Centralization of these related business will promote efficiency of resources and increase competitiveness in product development, manufacturing and sales.

Integration of PPC Business at TEC
In the 30 years since it entered the copier business, Toshiba has built up a reputation for highly reliable high-performance products, and established a global sales and marketing presence supported by copier manufacturing facilities in Japan, China and France and toner development and production plants in Japan, the USA and France. TEC, one of the largest Toshiba Group companies, is active worldwide in three main sectors: retail information systems, including POS systems; household appliances, including lighting fixtures; and electronic imaging systems, where its main products are facsimiles, printers and image scanners. In 1994, TEC integrated Toshiba's facsimile and printer operations into its own, positioning itself as Toshiba Group's core company in document-processing peripheral equipment for computers.

With the copier industry witnessing a transition from analogue to digital technology that is fast promoting the fusion of copiers with previously stand-alone document-processing equipment, the merger of Toshiba's copier business with TEC's imaging equipment business will position Toshiba Group to take full advantage of the trend to electronic imaging solution with networking capabilities. The business integration will also contribute to streamlined operations and a better deployment of product development and manufacturing resources.

The integration strategy will first be applied to the domestic business and, once completed, we expect to extend it to Toshiba's overseas subsidiaries of PPC development and manufacturing operations.

Transfer of Lighting Business to Toshiba Lighting & Technology
Today, TEC manufactures household fluorescent lighting fixtures, and ballast and electronic ballast for fluorescent lamps. Toshiba Lighting & Technology markets these products and also carries out some R & D in this area. The transfer of TEC's development and manufacturing operation to Toshiba Lighting & Technology will bring together all aspects of Toshiba's lighting business in a single, dedicated company.

Company Profile
The new Toshiba TEC Corporation will develop its presence in two core business areas. Electronic imaging systems will cover copiers, facsimile, printers, scanners and integrated systems, while retail information systems will continue to develop industry-leading point-of-sales terminals and electronic cash registers.

Company NameToshiba TEC Corporation
AddressChiyoda-ku, Tokyo
CapitalAbout ¥40 billion
Toshiba's holding50.02%
PresidentMitsuo Kubo (President of TEC Corporation)
Main BusinessesDevelopment, manufacturing and sales of plain paper copiers, facsimiles, printers, scanners, point-of-sales equipment, and development and manufacturing small home appliances, such as cleaners.

Toshiba's Overseas Subsidiaries (Development and Manufacturing)
U.S.AToshiba America Information Systems, Inc.
President: Atsutoshi Nishida
FranceToshiba Systèmes (France) S.A.
President: Alain Prénat
ChinaToshiba Copying Machine (Shenzhen) Co., Ltd.
President: Tetsuo Uebuchi


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.

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