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Toshiba Establishes Joint Venture for Rolling Stock Electric Equipment
with Major Chinese Locomotive Manufacturer

28 August, 2002

Tokyo--Toshiba Corporation today announced that it will establish a joint venture with Dalian Locomotive & Rolling Stock Works (DLRW) to manufacture, market, maintain and service electric equipment for rolling stock. The companies today signed an agreement on the joint venture in Dalian, China.

China's continued emergence as a powerful economic force is promoting development of essential infrastructure, including the construction of a new intercity rail network. Toshiba has state-of-the-art technology in the manufacture of electric equipment for rolling stock, and is seeking to expand its business in the People's Republic. State-run DLRW, one of China's top three manufactures of locomotives, wants to reinforce its capabilities in electrical systems for rolling stock. The new joint venture is a win-win solution for both partners that will also allow them to contribute to the upgrade of China's railroad system.

Under the terms of the agreement signed today, a new joint venture, Dalian Toshiba Locomotive Electric Equipment Co., Ltd., will be established in October 2002. Its initial capitalization of 200-million yen will be 50% subscribed by Toshiba Corporation, 10% by Toshiba China Co., Ltd and 40% by DLRW. The new company, Toshiba's first overseas manufacturing facility for rolling stock electric equipment, will produce propulsion systems and auxiliary power supply systems.

The new joint venture is well timed. With the approach of the 2008 Beijing Olympic Games, and in order to support continued economic development, the Chinese government's five-year plan for the period 2001-2005 includes development of new intercity lines and electrification of diesel lines. Local railroad projects are also planned in some 15 cities.

Toshiba entered the Chinese market last year when the company won orders for the electric equipment of local lines in Dalian, Beijing and Tianjin. The joint venture with DLRW will further support the company's penetration of the railway system business.

Outline of Joint Venture Company

Company name Dalian Toshiba Locomotive Electric Equipment Co., Ltd.
Established October 2002 (plan)
Start of operation April 2003 (plan)
Capital 200 million yen on establishment; 400 million yen by April 2003
Investment holding Toshiba Corporation: 50%
Toshiba China Co., Ltd: 10%
Dalian Locomotive & Rolling Stock Works: 40%
Location Dalian Free Trade Zone, Dalian, The People's Republic of China
Chairman Not decided (to be appointed by DLRW)
President Not decided (to be appointed by Toshiba)
No. of employees 35 (as of April 2003)
Factory area 2,300 m2 (as of April 2003)
Factory completion February 2003 (plan)
Business areas Manufacture, marketing, maintenance and service of rolling stock electric equipment, including propulsion systems (main converter/inverter, variable voltage variable frequency inverter) and auxiliary power supply systems (static inverter).

Outline of DLRW

Company name Dalian Locomotive & Rolling Stock Works
Established 1899
Capital 6.5 billion yen
Location 51 Zhongchang Street, Shahekou District,
Dalian, The People's Republic of China
President Tan Chengxu


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