Toshiba Expands Relationship with China's largest electronics company, Sichuan Changhong Electronics Group Corp|
21 August, 1998
Tokyo--Toshiba Corporation today announced that it will provide leading-edge production technology for its high-end home air-conditioners to Sichuan Changhong Electronics Group Corporation (), China's leading electronics company.
Under a newly signed agreement, Toshiba will provide Sichuan Changhong Electronics with state-of-the-art manufacturing technology for high-end air-conditioners featuring energy-efficient inverter control and an air-cleaning capability. Toshiba will support the technology transfer and production start-up with the dispatch of engineers to the Sichuan Changhong Electronics, and also provide training for Sichuan Changhong Electronics engineers sent to Japan.
Demand for high-performance, low energy consumption air-conditioners is set to rise in China. Toshiba's forecasts indicate the market rising to 6.5 million units in 1998, an 8% increase over 1997. Following the transfer, Sichuan Changhong Electronics will start to manufacture high-end air-conditioners, employing Toshiba's product technology and manufacturing know-how, in February, 1999. Annual output is expected to reach 500 thousand units a year.
Toshiba is an acknowledged leader in home-use air conditioners, known for pioneering inverter control technology that reduces power consumption through flexible control of the motor. Sichuan Changhong Electronics addition of high-value-added products based on Toshiba's technology to its current product lines, will allow the company to leverage its current position in the Chinese market and achieve market leadership.
Toshiba and Sichuan Changhong Electronics, China's largest TV maker, have steadily developed favorable business relationship since the late 1980s. In 1992, Toshiba started to provide Sichuan Changhong Electronics with large size color TV chassis and related production technology. Today, Toshiba also supplies color picture tubes and semiconductor devices for televisions. This successful collaboration prompted a 1997 agreement between the companies to explore extending cooperative relations to other home appliances, to audio visual products, and to link between Sichuan Changhong Electronics and Toshiba Group Companies. The air-conditioner agreement is among the first fruits of this understanding.
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