| Mitsubishi Electric and Toshiba Announce Integration
of Industrial Electric and Automation Systems Businesses|
18 April, 2003
In Japan and the World Market
Mitsubishi Electric Corporation
TOKYO, April 18, 2003 -- Mitsubishi Electric Corporation (President and CEO: Tamotsu Nomakuchi) and Toshiba Corporation (President and CEO: Tadashi Okamura) announced that they would establish a new joint venture company integrating their businesses in industrial electric and automation systems, including industrial supervisory control systems, drive systems and power distribution systems. From October 1, 2003, the new company will start business by offering customers worldwide advanced capabilities in industrial electric and automation systems, covering industries as diverse as metal processing, pulp and paper, petrochemicals, automobiles and foods.
The new joint venture will bring together all key functions in the partners respective businesses including development, manufacturing and engineering, sales, installation and services. It will integrate the assets of the relevant divisions of each partner, TMA Electric Corporation, an equally owned joint venture of Mitsubishi Electric and Toshiba for large capacity motors, and Toshiba GE Automation Systems Corporation, a Toshiba subsidiary in Japan. The combined operations of the new company are expected to promote overall competitiveness and a global presence, and to support an operating structure that will position the new entity as a leading system integrator in industrial electric and automation systems.
The global market outlook for industrial electric systems remains severe. In Japan, manufacturers continue to cut back on capital investment. While overseas markets are characterized by stable demand they are also witnessing intensified competition. Mitsubishi Electric and Toshiba decided to integrate their businesses to enhance competitiveness and promote their presence in the overseas markets for industrial electric and automation systems.
This integration is expected to benefit to three key areas
Outline of New Company
About Mitsubishi Electric Corporation
With over 80 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (TSE: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. The company has operations in 35 countries and recorded consolidated group sales of 3,649 billion yen (US$27.4 billion) in the year ended March 31, 2002. For more information about Mitsubishi Electric visit http://global.mitsubishielectric.com
About Toshiba Corporation
Toshiba Corporation, a world leader in high technology, is a diversified manufacturer and marketer of advanced electronic and electrical products, spanning information and communications equipment and systems, internet-based solutions and services, electronic components and materials, power systems, industrial and social infrastructure systems, and household appliances. The companys integration of these wide-ranging capabilities assures its position as a leading company in all aspects of industrial electric and automation systems. Toshiba has 176,000 employees worldwide and annual sales of over US$40 billion. Visit Toshiba's web site at http://www.toshiba.co.jp/index.htm
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Mitsubishi Electric Corporation
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