TOKYO - Toshiba Corporation and Toshiba Singapore Pte. Ltd. will together establish a new company near Jakarta, Indonesia, to produce color television sets. The company will enhance local manufacturing operations and meet growing demand from the global TV market.

The new company, P.T. Toshiba Consumer Products (Indonesia), will have an initial capitalization of US$15.6 million, two-thirds of which will be subscribed by Toshiba Singapore Pte., Ltd. and one-third by Toshiba Corporation. Capital investment for site construction and procurement of manufacturing equipment will amount to some US$42 million by March, 1998.

This August, the new company will start construction of a 25,000m2 manufacturing facility on a 124,000m2 site in the East Jakarta Industrial Park, 40 kilometers east of Jakarta. Construction will be completed in April, 1996, and production of 14- and 20-inch color TVs will start from June 1996, at a capacity of 400 thousand units per year. Initial employment will be 350, rising to 1,000 in 1997, when production capacity will be more than doubled to 1 million sets annually.

The plant's production will be marketed locally and exported to other Asian countries, North and South America, Eastern Europe, the Middle East and Africa.

The world color TV market is expected to grow steadily in coming years. Growth in Asia is particularly strong, where unit growth of 10 percent is expected this year. The Indonesian market this year is forecast to grow by 25 percent to 1.5 million units.

Toshiba has production facilities for color TVs in all major regions. Its production in Asia will reach 1.3 million sets this year, an increase of 400 thousand units over the previous year, with Toshiba Singapore Pte., Ltd, playing the major role. The addition of the Indonesian plant will help Toshiba boost output of color TVs and meet growing demand from the world market, especially Asia.

The new plant follows on from Toshiba's establishment of a joint venture company to manufacture color picture tubes, P.T. Tosummit Electronics Devices Indonesia, which is also located in the East Jakarta Industrial Park. It will start production in September, 1996, and supply picture tubes to the new TV plant.

Toshiba selected Indonesia as the home for the new company because of its importance as a fast growing market; its proximity to Singapore, which enables Toshiba Singapore to extend full assistance to the new company; the ready availability of a qualified work-force; and the high production efficiency that can be achievd by sourcing color picture tubes from P.T. Tosummit Electronics Devices Indonesia.

Toshiba has been strengthening its marketing and sales of consumer products in Indonesia through PT. Topjaya (Chairman Ir. Akie Setiawan), its local manufacturer and distributor, and intends to further advance the partnership in the future.

Name:                 P.T. Toshiba Consumer Products (Indonesia) 
Start of Operation:   June, 1995
Capital:              US$15.6 million 
                      -- US$10.4 million (Toshiba Singapore Pte.,Ltd) 
                      -- US$5.2 million  (Toshiba Corp.)
Capital investment:   US$42 million 
Location:             Lemahabang Bakasi West Jawa Indonesia
Employees:            Approximately 350 (June 1996) 
Product:              14- and 20-inch color TVs
Production start-up:  June 1996 (Planned)