Toshiba Announces New Chinese Production Site.Business Editors/High-Tech Writers TOKYO--(BUSINESS WIRE)--May 17, 2002 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, today announced that it has acquired 400,000m2 of land, including future purchase rights, in Hangzhou Hangzhou (hang`jō`) or Hangchow (hăng`chou), city (1994 est. pop. 1,184,300), capital of Zhejiang prov., E China. , Zhejiang Zhejiang (jŭ`jyäng`) or Chekiang (chĕ`kyăng`), province (1994 pop. 43,410,000), c.40,000 sq mi (103,600 sq km), SE China, on the East China Sea. The capital is Hangzhou. Province. The site was acquired as a part of Toshiba's corporate strategy of constructing an optimized global production network, and will be utilized by Toshiba's in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. companies and its group companies. Toshiba Toshiba Corporation (株式会社東芝 Kabushiki-gaisha Tōshiba will establish a new subsidiary in June June: see month. this year to manage the land, support deployment of production infrastructure and production. China enjoys numerous advantages as a production base, including the ability to support globally-competitive manufacturing and infrastructures. China is also the world's biggest market, with a population of over one billion, and market growth is expected to receive an impetus Impetus is a stimulus or impulse, a moving force that sparks momentum. Impetus may also refer to:
Many manufacturers of components for information equipment are located in Hangzhou, the site of Toshiba's land acquisition, a cluster that supports highly efficient component procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and logistics. The many universities in the region will also allow Toshiba to offer employment to talented people, particularly engineers. In 1991, Toshiba established Hangzhi Machinery & Electronics Co., Ltd. to manufacture electronic devices for industrial and home appliances. The smooth operations of this Hangzhou-based operation, and the good relations Toshiba has established in Hangzhou, further persuaded Toshiba to make the purchase. Toshiba currently has 24 subsidiaries and affiliates in China, in operations ranging from electronic components to heavy electrical appliances. Further expansion of Chinese operations will take the locally employed workforce to the 17,000-level. In addition to manufacturing, Toshiba will direct its resources to high-tech development in cooperation with Chinese universities and locally hired engineers and researchers. Toshiba's long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. strategy will see several businesses establish production sites in China. Positioning Hangzhou as common center for all of them will promote highly efficient, optimized Chinese production network and reinforce global competitiveness. This approach allows Toshiba's in-house companies and group companies to shorten (audio, compression) Shorten - A form of lossless audio compression. lead times in entering the Chinese market and establishing new manufacturing sites, and enhances the ability to meet market requirements in a very short period. The new site will primarily be used to expand IT-related businesses, and a manufacturing subsidiary for portable PCs will be the first operation there. It will start operation in April 2003 as Toshiba's second portable PC production site in China, after Toshiba Computer Systems (Shanghai Shanghai (shăng`hī`, shäng`hī`), city (1994 est. pop. 12,980,000), in, but independent of, Jiangsu prov., E China, on the Huangpu (Whangpoo) River where it flows into the Chang (Yangtze) estuary. ) Co., Ltd., which was jointly established with Chinese company in Shanghai and started production in 2000. This second plant will reinforce global logistics and product competitiveness by shortening time-to-market for Toshiba's PCs, and also reinforce Toshiba's position in the Chinese market for portable PCs. Toshiba will extend use of the new site to cover production of components, product assembly in due course, and will gradually create an integrated IT production complex serving the global IT market. The company is now considering detailed plans for this.
Outline of New Subsidiaries
Operating Company
Company Name Toshiba Hangzhou Co., Ltd.
Capital Approximately 550 million yen (Toshiba Corporation
82%, Toshiba China Co., Ltd. 18%)
Headquarters Hangzhou, Zhejiang, China
Establishment June 2002 (planned)
President To be decided
Site area Approximately 400,000m2 (including future option to
acquire 200,000 m2)
Employee Approximately 30
Business Management of site and production infrastructure,
support for production, and administrative services
such as welfare.
Portable PC Production Company
Company Name Toshiba Information Equipment (Hangzhou) Co.,
Ltd.
Capital Approximately 900 million yen (Toshiba
Corporation 90%, Toshiba China Co., Ltd. 10%)
Headquarters Hangzhou, Zhejiang, China
Establishment June 2002 (planned)
Start of Production April 2003 (planned)
President: To be decided
Approximately 60,000m2
Production Capacity 750,000 units a month (fiscal 2003)
Employee: Approximately 1,700 (at end of fiscal 2003)
Business: Production, sales, maintenance, technology
support service and R&D of computers,
peripherals and components.
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