Toshiba Carrier and Fujitsu General Announce Joint Venture in Thailand to Manufacture Compressors

JAPAN, Oct. 26, 2012 - Toshiba Carrier Corporation, Fujitsu General Limited and its manufacturing subsidiary FGA (Thailand) Co., Ltd., announced today an agreement to form a joint venture in Thailand to manufacture twin rotary compressors for air conditioning equipment.

Toshiba Carrier will hold a 51 percent ownership share and FGA a 49 percent ownership share. The new company is scheduled to be established in November 2012 at Laem Chabang Industrial Estate in Chonburi Province, the Kingdom of Thailand.

According to industry estimates, the global market of compressors, which are key components for air conditioning equipment, marked a positive year-on-year growth, 7.8% from the previous year in 2011 with approximately 91 million units sold. Today we continue to see a growing demand for energy-efficient air conditioning products due to the price increases in natural resources and energy, and as a result expect the market of compressors for high-tier air conditioners to continue to grow as well.

The formation of the new joint venture will accelerate Toshiba Carrier's global business reorganization^*1 and will also reinforce Fujitsu General's compressor business^*2 for further expansion of its core air conditioning business. The new company aims to leverage synergy between both companies to enhance distribution and cost competitiveness, and will focus on innovation to serve the rapidly-evolving markets of compressors for air conditioning equipment across the world.

Note

*1 global business reorganization :

In addition to establishing this new joint venture, Toshiba Carrier Corporation is in process of executing a global business reorganization, launching the construction of its second factory building at Toshiba Carrier (Thailand) Co., Ltd., its subsidiary in Thailand (Head Office: Bangkadi Industrial Park, Muang District Pathumthani) in May 2012. The new building is scheduled to be completed at the end of February 2013. It also signed an agreement with Hangzhou Economic-Technological Development Area (HEDA), Zhejiang Province, People's Republic of China, in June 2012, to establish a new company in HEDA to manufacture and distribute air conditioning equipment destined for Mainland China.

*2 compressor business :

(2) Fujitsu General Limited, aiming to reinforce the air conditioning business as its core business, started the development and manufacture of its own compressors in 2009 for light commercial and commercial air conditioning systems. Fujitsu General will transfer the compressor manufacturing department of FGA, its wholly-owned subsidiary to manufacture compressors, to the new company, following the formation of the joint venture with Toshiba Carrier.

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