Daikin and Matsushita -Panasonic- Agree to Form Joint Venture in China To Produce Motors for Air Conditioning Compressors.
The combined new venture investment is U.S.$20.8 million. Daikin holds 60 percent of the venture and Matsushita has the remaining 40 percent. The company will be formed in September 2004. Production will commence in December.
Capitalizing on the motor development and manufacturing technologies of the two companies, Daikin Motor Suzhou will produce and sell Daikin hermetic motors* and Matsushita hermetic motors which Matsushita's motor unit has been supplying to Daikin.
In 2004, 6.7 million home air conditioners and 700,000 industrial units are expected to be sold in Japan alone. Worldwide, it is estimated that 50 million home units, including some 20 million in China, and 11 million industrial units are sold annually. As the market grows further led by China and other Asian countries and Europe, the demand for the compressors and their motors is expected to increase.
The new company will pursue manufacturing highly-efficient and cost-competitive products in the world market.
*Hermetic (airtight seal) motors are commonly used in compressors for air conditioners and freezers.
Outline of Joint Venture Company Name: DAIKIN MOTOR SUZHOU CO., LTD. Location: Zone 3, Suzhou Industry Park, Suzhou, China Floor Space: 3,300 square meters President: To be appointed by Daikin Capital: U.S.$20.8 million (approx. 2.3 billion yen) Ownership Ratio: Daikin 60%, Matsushita 40% Main Business: Production and sales of hermetic motors for air conditioning compressors Establishment: September 21, 2004 Operation: Planned to commence in December 2004 Projected Sales: Approx. 4.2 billion yen (for the first fiscal year) Projected Number of Approx. 350 (for the first fiscal year) Employees:
About Daikin Industries, Ltd.
Daikin Industries, Ltd. is a global leader in the manufacture of commercial-and industrial use air conditioning systems and holds more than one-third of the market share in Japan. Daikin is also one of the leaders in the fluorochemicals industry, with an approximately 20% share of the world market. Daikin boasts an unparalleled combination of mechanical, electronic, and chemical expertise as well as robust R & D capabilities. The company continues to leverage these strengths to create new, innovative products and flexible, highly efficient production systems. Daikin is a dynamic global company with a well-established presence in five major areas: Japan, China, Southeast Asia, Europe, and North America. Thus, Daikin is poised to excel in an increasingly borderless business environment.
About Matsushita Electric Industrial Co., Ltd. (Panasonic)
Matsushita Electric Industrial Co., Ltd., best known for its Panasonic brand name, is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated sales of U.S.$71.92 billion for the fiscal year ended March 31, 2004. Matsushita's shares are listed on the Tokyo, Osaka, Nagoya, New York (NYSE:MC), Euronext Amsterdam and Frankfurt stock exchanges. For more information on the company and its Panasonic brand, visit the Matsushita website at http://www.panasonic.co.jp/global/top.html.
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