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MITSUBISHI ELECTRIC AND TOSHIBA ANNOUNCE INTEGRATION OF INDUSTRIAL
ELECTRIC AND AUTOMATION SYSTEMS BUSINESSES
--New Joint Venture To Enhance Competitiveness
In Japan and the World Market--
TOKYO, April 18, 2003 -- Mitsubishi Electric
Corporation (President and CEO: Tamotsu Nomakuchi) and Toshiba Corporation
(President and CEO: Tadashi Okamura) announced that they would establish
a new joint venture company integrating their businesses in industrial
electric and automation systems including industrial supervisory
control systems, drive systems and power distribution systems. From
October 1, 2003, the new company will start business by offering
customers worldwide advanced capabilities in industrial electric
and automation systems, covering industries as diverse as metal
processing, pulp and paper, petrochemicals, automobiles and foods.
The new joint venture will bring together all key functions in the
partners' respective businesses including development, manufacturing
and engineering, sales, installation and services. It will integrate
the assets of the relevant divisions of each partner, TMA Electric
Corporation, an equally owned joint venture of Mitsubishi Electric
and Toshiba for large capacity motors, and Toshiba GE Automation
Systems Corporation, a Toshiba subsidiary in Japan. The combined
operations of the new company are expected to promote overall competitiveness
and a global presence, and to support an operating structure that
will position the new entity as a leading system integrator in industrial
electric and automation systems.
The global market outlook for industrial electric systems remains
severe. In Japan, manufacturers continue to cut back on capital
investment. While overseas markets are characterized by stable demand
they are also witnessing intensified competition. Mitsubishi Electric
and Toshiba decided to integrate their businesses to enhance competitiveness
and promote their presence in the overseas markets for industrial
electric and automation systems.
| This integration is expected to
benefit three key areas: |
| 1. |
Enhanced product competitiveness.
Reorganizing development and manufacturing facilities and promoting
product line integration will achieve this. Centralized product
development activities will lead to faster product development.
Review and realignment of product lines and reorganized manufacturing
will improve cost competitiveness. |
| 2. |
Reinforced market presence.
A reinforced market presence in both Japan and overseas will
follow complementary customer and market integrations in Japan
based on the partners' strengths. A more global sales network
will boost visibility overseas. |
| 3. |
Enhanced operating efficiency.
This will be achieved through business integration and a new
management structure will promote speedy decision-making. |
| Outline of New Company |
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Company name: |
TBA |
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Start of operations: |
October 1, 2003 |
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Capitalization and capital reserve:
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Approximately 35 billion yen (planned) |
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Shareholding: |
Toshiba 50%, Mitsubishi Electric
50% |
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President: |
TBA |
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Headquarters: |
Tokyo, Japan (planned) |
| - |
Business area: |
1) Sales, engineering, installation
and servicing of industrial
electric and automation systems for wide range of industrial
manufacturing plants. |
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2) Development and manufacturing
of power electronic apparatus, large capacity electric motors
and automation systems for industrial applications. |
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Sales Target: |
Approximately 160 billion yen
in fiscal year 2006 |
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Manufacturing facilities: |
1. Supervisory control systems
for manufacturing plant:
Fuchu (part of Toshiba Fuchu Complex); Kobe and
Nagasaki (parts of Mitsubishi Electric facilities) |
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2. Power electronics equipment:
Fuchu (part of Toshiba Fuchu Complex); Kobe and
Nagasaki (parts of Mitsubishi Electric facilities)
3. Large capacity electric motors: Keihin, Mie, Nagasaki (currently
handled by TMA
Electric Corporation) |
| - |
Employees: |
Approximately 2,300 (at initial
operation) |
About Mitsubishi Electric Corporation
With over 80 years of experience in providing reliable, high-quality
products to both corporate clients and general consumers all over
the world, Mitsubishi Electric Corporation (TSE: 6503) is a recognized
world leader in the manufacture, marketing and sales of electrical
and electronic equipment used in information processing and communications,
space development and satellite communications, consumer electronics,
industrial technology, energy, transportation and building equipment.
The company has operations in 35 countries and recorded consolidated
group sales of 3,649 billion yen (US$27.4 billion) in the year ended
March 31, 2002. For more information about Mitsubishi Electric visit
http://global.mitsubishielectric.com
About Toshiba Corporation
Toshiba Corporation, a world leader in high technology, is a diversified
manufacturer and marketer of advanced electronic and electrical
products, spanning information and communications equipment and
systems, internet-based solutions and services, electronic components
and materials, power systems, industrial and social infrastructure
systems, and household appliances. The company's integration of
these wide-ranging capabilities assures its position as a leading
company in all aspects of industrial electric and automation systems.
Toshiba has 176,000 employees worldwide and annual sales of over
US$40 billion. Visit Toshiba's web site at http://www.toshiba.co.jp/index.htm
For media inquiries only:
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Mitsubishi Electric Corporation
Robert Barz
Public Relations Department
Tel: +81-3-3218-2346
Robert.Barz@hq.melco.co.jp
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Toshiba Corporation
Junko Furuta
Corporate Communications Office
Tel: +81-3-3457-2105
press@toshiba.co.jp |
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