Tokyo, March 1, 2002 — Mitsubishi Electric Corp. and Toshiba Corp. today announced that they will integrate their power transmission and distribution businesses in a joint venture company that will be incorporated in April this year and start business on October 1, 2002.
The new joint venture will bring together the sales, engineering, development and manufacturing functions of the parent companies for Japan’s largest company dedicated to power transmission and distribution. The scale and business volume of the combined operation will match those of the world’s top three companies in the business and allow the new company to implement an operating structure that leads a global presence.
The announcement by Mitsubishi Electric and Toshiba reflects the tough realities of the transmission and distribution 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 reinforces and extends this collaboration and is expected to promote the two companies’ fundamental competitiveness in the transmission and distribution business.
Outline of New Company
Company name: To be decided.
Start of operations: October 1, 2002 (incorporated in April 2002)
Capitalization: 40 to 50 billion yen at initial operation
Shareholding: Toshiba 50%, Mitsubishi Electric 50%
President: To be decided.
Headquarters: Tokyo, Japan (planned)
Business domains: Sales, engineering, development, manufacture and maintenance of high voltage switchgears, power transformers, Protection systems and computerized power system control, excluding protection systems in the domestic market.
1. High Voltage Switchgears: Kawasaki and Itami
2. Power Transformers: Kawasaki and Ako
3. Protection systems: Fuchu and Kobe
4. Computerized power system control: Fuchu and Kobe
*Kawasaki and Fuchu are Toshiba facilities. Itami, Ako and Kobe are Mitsubishi Electric facilities.
Sales Target: 150 billion yen at fiscal year 2003.
Employees: approximately 2,700 at initial operation. (planned)
About Mitsubishi Electric Corp.
With over 80 years of experience in providing products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corp. is a manufacturer and marketer of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and construction. Additional information on Mitsubishi Electric is available at www.mitsubishielectric.com.
About Toshiba Corp.
Toshiba Corp. is a provider of information and communications systems, electronic components, consumer products and power systems. The company’s integration of these wide-ranging capabilities assures its position as a company in all aspects of power generation, transmission and distribution. Visit Toshiba’s website at http://www.toshiba.co.jp/index.htm.