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TCL to Set up JV with Toshiba

Shenzhen-based appliance maker TCL International Holdings Ltd. had signed an agreement with Japan’s Toshiba Corp. to cooperate in making and marketing appliances in China, the companies said Thursday.

Under the agreement, TCL and Toshiba will jointly invest about 5 billion yuan (US$602 million) to build a new factory in Foshan City, Guangdong Province, to produce refrigerators and washing machines from January 2006.

Toshiba will own more than 50 percent of the manufacturing venture, while TCL will have majority control of the marketing side.

Via the deal, one of the largest involving a Japanese manufacturer of white goods in China, the two firms would seek to better position themselves in the fast-growing but competitive Chinese market, the companies said.

Some products will initially be exported to Japan, but the focus will be on selling them in China.

The agreement marks another breakthrough for TCL, which faces a saturated market at home and has been seeking strategic partnerships with leading international companies.

Last year, TCL announced a joint venture with Thomson SA, a French company that owns the American television brand RCA.

 

(Shenzhen Daily November 5, 2004)

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