Mitsubishi Electric Corp. and Toshiba Corp. have announced they will integrate their power transmission and distribution (T&D) businesses in a joint venture company that will be incorporated in April this year and start business Oct. 1, 2002. The name of the new company was undetermined at the time of this writing.
The new joint venture will bring together the sales, engineering, development and manufacturing functions of the two companies. Products to be developed, manufactured and maintained by the combined company include: high voltage switchgear, power transformers, protection systems and computerized power system control.
The announcement by Mitsubishi Electric and Toshiba reflects the tough realities of the T&D industry. In Japan, reduced investment by power utility companies has eroded the market. Overseas, demand remains stable, but competition is fierce against industry leaders.
Mitsubishi Electric and Toshiba’s first response to these market conditions was an October 2000 comprehensive agreement aimed at enhancing product development and productivity. The latest announcement extends the collaboration.