Toshiba's New Company in China to Manufacture Plain Paper Copiers

1 March, 1996

TOKYO -- Toshiba Corporation today announced that it will establish a new subsidiary in China to manufacture plain paper copiers (PPCs). The company, Toshiba Copying Machine (Shenzhen) Co., Ltd. will be incorporated in Shenzhen, Guangdong Province by the middle of this month, subject to formal approval from the Shenzhen authorities.

The announcement follows an agreement between Toshiba and Leo Electronics Co., Ltd., a Japanese manufacturer of electronic equipment, under which Toshiba will take a majority holding in Leo's plain paper copier (PPC) manufacturing subsidiary in Shenzhen. Eventually, the new company will have a total paid up capital of HK$ 18,583,000 (approximately 240 million yen).

Toshiba will invest HK$ 15,050,000 (approximately 200 million yen) resulting in an 81 percent stake of the new company. Toshiba (China) Co., Ltd., the Beijing-based Toshiba subsidiary that coordinates and supervises Toshiba's business in China, will hold nine percent, while Leo will retain a ten percent minority interest in the company.

Today, Toshiba has three core manufacturing facilities for its PPC operations: Yanagicho Works in Japan develops and produces PPCs and toners; the Martin-Eglise plant in France manufactures PPCs and toners; and the Mitchell Plant in South Dakota, U.S.A. is Toshiba's largest toner facility, serving the world market.
In April 1994, Toshiba started to source compact type copiers from the Leo Electronics Shenzhen plant. By integrating this facility into its current network, Toshiba aims to secure a firm basis for approaching the worldwide market for copier equipment, including the fast-growing Chinese market.

Toshiba will provide wide-ranging technical support to the new company and expand production capacity from its present level of 60,000 units a year to 150,000 units by 1998. The plant will also produce peripheral equipment for PPCs. The plant will have approximately 220 employees this year.

Outline of the new company
Name: Toshiba Copying Machine (Shenzhen) Co., Ltd.
Chairman: Mamoru Komai
President: Susumu Domon
Founded: March 1996 (planned)
Location: No.27 Baoan, Shenzhen, Guangdong Province, China
Site area: 4,400 square meters
Floor area: 8,600 square meters
Capital: HK$ 18,583,000 (approximately 240 million yen)
Employees: 220 (Year 1996)
Products: PPCs, and PPC peripheral equipment

Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.