| Toshiba and General Electric in Agreement for International Joint Venture in Large Industrial Systems 7 March, 2000 Toshiba Corporation Tokyo, Japan -- Toshiba Corporation and General Electric Company today announced an intent to form an international joint venture to maximize their cutting-edge capabilities in large industrial drive systems for plant automation applications. The new company expects to start operations in October 2000. As manufacturers seek further gains in productivity, they are increasingly turning to advanced automation and drive systems for producing high quality products. Through the joint venture announced today, Toshiba and GE will contribute wide-ranging resources and know-how to provide state-of-the-art automation systems to manufacturers of ferrous and non-ferrous metals, paper, material handling, and other industrial products. When completed, this new joint venture will leverage the advanced manufacturing capabilities of two world class companies. It will have a global presence in system design, testing, sales, commissioning and service. It will enjoy enhanced efficiency and economies of scale in key areas such as engineering and procurement. Toshiba will take a 51% stake in the global joint venture, while GE will hold a 49% stake. It is expected that the new company will have subsidiaries in Tokyo, Japan and in Virginia, U.S.A. The new subsidiary in Tokyo will be responsible for marketing in Japan, Asia and Oceania, and maintaining close relationship with the customers in these regions. The new subsidiary in the U.S. will be responsible for marketing in the North America, Latin America and South America. The joint venture strengthens both companies' operations in Japan and USA where sluggish demand is combined with intense competition from domestic and overseas manufacturers. The combined strengths of the joint venture will enable more competitive international operations in the world market that is expected to grow at rate of 2 to 3% a year. The advantages of the business' unified operations are expected to generate significant gains in productivity and to provide a strengthened base for offering enhanced system engineering and customer support on a global scale. Toshiba and GE have an established relationship in the power generation business, including turbines for generators and nuclear energy technology. The new joint venture will further strengthen ties between the two companies. The joint venture is subject to various governmental reviews in Japan and the U.S. Profile of New Joint Venture
Japanese subsidiary
U.S. subsidiary
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