| Toshiba Establishes Chinese Joint Venture Company for
Manufacture and Sales of Small Banknote Sorting Machines
20 December, 2002
Tokyo--Toshiba Corporation today announced that it would establish a joint-venture company with China's Tsinghua Tongfang Co., Ltd., to develop, manufacture, sell and maintain small banknote sorting machines for the Chinese yuan. The joint venture will be incorporated and start operation in January 2003.
The new company, Beijing Tongfang-TsingShiba Business Machines Co., Ltd., will initially target two compact banknote sorting machines, a note counter and a currency sorter that checks that notes are not too degraded or dirty. The company will be based in Beijing and have an initial capitalization of 300 million yen, 49% from Toshiba group and 51% from Tsinghua Tongfang, the Chinese market leader in banknote sorting.
China's membership of the WTO is accelerating modernization of its financial and banking sectors. Infrastructure, including ATM, is being developed and upgraded, and the quality of the notes in circulation is being improved by withdrawing dirty or damaged notes. These efforts are made all the more difficult and challenging by the sheer size of China and the huge volume of currency in circulation.
Beijing Tongfang-TsingShiba Business Machines Co., Ltd. will support and promote infrastructure development in the banking sector. It will bring together Toshiba's technical and manufacturing capabilities and Tsinghua Tongfang's yuan banknote inspection technology and nationwide sales network. Fusing the two companies' capabilities is expected to generate sales in the range of 15 to 20 billion yen in five years time.
Incorporated in June 1997, Tsinghua Tongfang Co., Ltd. is a member of the group of companies established by National Tsing Hua University to serve strategic businesses and which enjoy a high level of brand recognition in China. Toshiba already cooperates with National Tsing Hua University in research into Chinese language speech recognition at Toshiba's Beijing R&D center, and will now build on the new JV with Tsinghua Tongfang Co., Ltd. to investigate and develop promising business opportunities in China.
Outlines of Joint Venture
Outlines of Tsinghua Tongfang Co., Ltd.
|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.|