Tokyo -- Toshiba Corporation today announced that it would reinforce its commitment to the Chinese white goods market in 2003, in order to meet growing demand from increasingly discerning and demanding consumers seeking products that add to the quality of life. The first step to a heightened market presence will be taken in spring next year with the launch of fully automatic washing machines carrying the Toshiba brand name.

The washing machines will be developed and designed in Japan and manufactured in China by Toshiba Washing Machine (Wuxi) Co., Ltd., a joint venture between Toshiba and Wuxi Little Swan Co., Ltd., China's leading white goods manufacturer. Following formal signing of the agreement between the two partners today in Wuxi Jiangsu, China, the new joint venture will be incorporated in January 2003. It will undertake the manufacture, sales and after-sales service of washing machines and clothes dryers, their main parts and accessories.

Toshiba Washing Machine (Wuxi) Co., Ltd. will have complete access to Toshiba's technological and manufacturing capabilities and bring them to products targeting mid- to high-income consumers. Department stores and other outlets in China's coastal fringe will provide the main sales channel, and the company anticipates sales of 100,000 units in the first year of operation, rising to 700,000 units in 2005.

Toshiba started exporting refrigerators to the Chinese market in the 1980s and is today a highly regarded brand. OEM production of Toshiba-brand refrigerators started in 2001, and is supporting expanded sales and market share. The decision to start manufacturing Toshiba-brand washing machines in China builds on the success of this the strategy and will strengthen Toshiba's position in a highly promising market.

Outline of new company

Outline of Wuxi Little Swan Co., Ltd.