Carrier Corporation Announces Air Conditioning Alliance with Toshiba Corporation.FARMINGTON, Conn.--(BUSINESS WIRE)--Aug. 31, 1998--Carrier Corporation today announced the signing of a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. to form a strategic alliance with Toshiba Corporation (company) Toshiba Corporation - A Japanese technology manufacturer with 364 subsidiaries worldwide. Toshiba makes and sells electronics for home, office, industry and health care including information and communication systems, electronic components, heavy electrical apparatus, , a Japanese leader in residential and light commercial air conditioning air conditioning, mechanical process for controlling the humidity, temperature, cleanliness, and circulation of air in buildings and rooms. Indoor air is conditioned and regulated to maintain the temperature-humidity ratio that is most comfortable and healthful. , ventilation equipment and compressors. This alliance will combine Carrier's and Toshiba's complementary product offerings and capabilities in technology innovation, manufacturing, quality assurance, and sales and marketing. "This is an awesome partnership that will allow Carrier to expand its presence in Japan and improve its competitiveness throughout the world with both Carrier and Toshiba technology and trademarks," said John R. Lord, Carrier president. Carrier is the world's largest manufacturer of heating, ventilation, and air conditioning (HVAC (Heating Ventilation Air Conditioning) In the home or small office with a handful of computers, HVAC is more for human comfort than the machines. In large datacenters, a humidity-free room with a steady, cool temperature is essential for the trouble-free ) systems and equipment, with 1997 worldwide sales of $6.1 billion. Toshiba's air conditioning equipment division had 1997 fiscal year sales of $1.1 billion. Under terms of this alliance, Toshiba will separate its entire Air Conditioning Equipment Division from the parent company and form with Carrier a Japan-based joint venture. Carrier will own 40 percent of Toshiba Carrier Corporation and Toshiba will own 60 percent. Carrier's current Japanese subsidiary, Toyo Carrier, will become a part of the new joint venture company. In addition, Carrier and Toshiba Carrier Corporation will form manufacturing joint ventures in the U.K., with Carrier holding a majority interest, and in Thailand, with Carrier and Toshiba Carrier Corporation owning equal interests. Toshiba will transfer its air conditioner manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in both countries to these new joint ventures. Carrier and Toshiba Carrier Corporation will also establish sales and marketing joint ventures in the U.K., Thailand and Malaysia, with Carrier holding a majority interest in each. Further, Carrier will integrate Toshiba's HVAC sales organizations, including those in Singapore, Hong Kong, France and Germany, and combine them with Carrier's existing operations. Carrier will complement its current line of products by also offering the Toshiba branded HVAC products globally. Carrier and Toshiba expect to consummate the alliance during the first half of 1999. Carrier Corporation is a subsidiary of United Technologies Corporation (NYSE NYSE See: New York Stock Exchange :UTX UTX United Technologies Corporation (stock abbreviation, AMEX) UTX Unreal Texture (a texture pack for Unreal-engine games) UTX Unit Training Exercise UTX Under Track Crossing ), a provider of a broad range of high technology products and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services to the aerospace, building systems and automotive industries.
CONTACT: Carrier Corporation
Matt Chadderdon, 315/432-6625
or
Toshiba Corporation
Keisuke Ohmori, 81-3-3457-2105
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