TCL, Toshiba to jointly make appliances in China
(Agencies)
Updated: 2004-11-05 10:37

Toshiba Corp. and TCL International Holdings Ltd. of China signed a contract Thursday to jointly manufacture and market household appliances in China, Toshiba officials said.

The contract calls for TCL and Toshiba to set up production and marketing joint ventures in January in the South China's Guangdong Province.

Refrigerator and washing machine production will begin at the new venture in January 2006, with combined output in the initial year planned at 1 million units, they said.

Sales in the initial year are estimated at 30 billion yen.

The new venture is to focus on producing advanced models that feature some of the latest technology used in Japan -- an approach that fits TCL's strategy of upgrading its technology as it expands overseas, and targets the growing domestic market for high-quality products.

Mainly targeting the Chinese market at first, the marketing venture will gradually expand sales to markets in Southeast Asia and export to Japan in the future, the officials said.

Toshiba hopes the venture will boost its share in China's appliance market to 10 percent from the current 1 percent, according to the officials.

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