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ANNOUNCEMENT OF COMPREHENSIVE ALLIANCE IN POWER TRANSMISSION AND DISTRIBUTION BUSINESS

18 October, 2000


TOKYO--October 18, 2000--Toshiba Corporation (President and CEO: Tadashi Okamura) and Mitsubishi Electric Corporation (President and CEO: Ichiro Taniguchi) today announced they have reached basic agreement on a comprehensive alliance in the power transmission and distribution business. In future, both companies will cooperate in this field, to increase their development and production efficiencies and expand their overseas businesses.

Products

(1)High voltage switchgears, power transformers and other equipment
(2)Computerized control systems, protection relays, distribution automation systems and other systems

Details of Alliance

(1)Technological collaboration for increased efficiency in product development
(2)Mutual OEM supply for increased efficiency in production
(3)Joint purchasing of parts and materials for reduced costs
(4)Joint study on the possibility of combining overseas sales and engineering forces in the future.

Background

  • While the companies are Japan's top manufacturers of power transmission and distribution equipment, they are not at the top of the world ranking.
  • A comprehensive alliance between the companies will position them among the top three manufacturers worldwide.
  • Scaled-back capital expenditure by electric utilities in Japan has produced a marked decrease in orders, and both companies see expanded overseas business as essential. Cooperation will also allow the companies to withstand increased cost competition with European rivals.
  • In order for both companies to propser in this severe environment, they must strengthen international competitiveness by optimizing efficient utilization of their technological and managerial resources.

For further information

Toshiba Corporation, Corporate Communications Office: 03-3457-2105
Mitsubishi Electric, Corporation Public Relations Dept.: 03-3218-2332


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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