| Toshiba Announces First Major Step of Reorganization
to Reinforce Toshiba Group Businesses Under Mid-term Plan|
12 June, 2003
Tokyo -- Toshiba Corporation today announced details of a major structural reorganization that will be implemented on October 1st, 2003. Announced in outline in the mid-term plan that Toshiba released in March 2003, the structural changes will support Toshiba in creating a profitable, optimized group operating structure that promotes management autonomy and flexibility.
The new organization advances Toshiba's goals of streamlining managerial efficiency through consolidation of in-house businesses with related group companies; promotion of strategic alliances with other companies; and enabling individual businesses to adopt management structures and practices best suited to their businesses. The reformation covers five major business lines: household appliances; e-Solutions; medical systems; materials and components and electron tubes.
While further details will be settled in due course, and main points of the reorganization, including the names of the new companies, are as follows.
1) Toshiba Consumer Marketing Corporation
Moves to enhance global business structures and sales and marketing of home appliances will be strengthened by making the Home Appliances Company, a Toshiba in-house company, into an independent entity, Toshiba Consumer Marketing Corporation. The new company will also integrate Toshiba Lifestyle-Electronics Corporation, currently a Toshiba subsidiary undertaking domestic sales of Toshiba's home appliances.
In addition to handling sales and marketing of white goods, such as refrigerators and washing machines, Toshiba Consumer Marketing Corporation will also supervise the operations of Toshiba Lighting & Technology Corporation (lighting fixtures), Toshiba Carrier Corporation (air-conditioners) and Toshiba Batteries Co., Ltd. (primary batteries) to promote their integrated operations. Manufacturing of white goods will be carried out by another new independent company operating under the oversight of Toshiba Consumer Marketing Corporation.
2) Toshiba Solutions Corporation
The e-Solutions Company, currently one of Toshiba Corporation's in-house companies, will be separated as an independent entity and integrated into one entity with Toshiba IT-Solutions Corporation, a subsidiary that currently handles systems development, marketing and services. Consolidation of R&D, engineering and marketing and unification of the wide-ranging expertise of the two companies will promote provision of advanced package solution and other services. The new company will fully exploit business potentials by promoting conversion from indent solutions to package-type solutions.
3) Toshiba Medical Systems Corporation
With a view to further strengthening the medical systems businesses, The Medical Systems Company, currently an in-house company of Toshiba Corporation, will become an independent group company on October 1st. The new company, Toshiba Medical Systems Corporation, will integrate its operations with those of Toshiba Medical Systems Co., Ltd., which now undertakes sales and marketing and maintenance in the Japanese market. Toshiba Medical Systems Corporation will establish itself as a global provider of comprehensive medical solutions, able to assure timely delivery of advanced products and excellent services to the world market, and will cover planning, R&D, design, manufacturing, sales and marketing and after-sales services.
4) Toshiba Materials Co., Ltd.
Toshiba Materials Co., Ltd., a new Toshiba group subsidiary, will take over the materials and components businesses currently handled by Toshiba Corporation's Display Devices & Components Control Center. The company will establish a highly profitable management structure that brings greater agility and operational flexibility to business in precision processing components and high purity materials for semiconductors and electronic devices, and materials and components for power generation and industrial equipment.
5) Toshiba Electron Tubes and Devices Co., Ltd.
The electron tubes businesses, currently handled by Toshiba Corporation's Display Devices & Components Control Center, will be separated from Toshiba Corporation to become a Toshiba group subsidiary specialized in these businesses. The new company will establish a highly profitable management structure that achieves greater agility and operating flexibility in marketing diverse electron tubes, including high power microwave tubes for scientific research, such as particle accelerators, and X-ray tubes for medical CT scanners and X-ray equipment.
|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.|