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Midea Holding Co. Ltd., a leading Chinese home electric appliances maker, will sell a 20 percent stake of its air conditioning division to Japanese electronics giant Toshiba.
Midea signed the agreement Thursday with Toshiba Carrier Corp.,the air conditioning division of Toshiba Corp., ending a four-year-long negotiation between the two sides.
Midea's air conditioning division, made up of four companies inChina, will produce air conditioners for Toshiba, which will be sold both in China and Japan, and the two sides will further cooperation in research and development, said Fang Hongbo, vice president of Midea.
A new joint venture will continue producing and selling air conditioners with the brand of Midea, Fang said.
As an important shareholder of the joint venture, Toshiba Carrier will take part in the company's decision-making while the Chinese side holds the majority shares, he said.
Starting its business of electronic home appliances in 1980, Midea reported an operating revenue of 17.5 billion yuan (US$2.12 billion) in 2003 as a leading producer of air conditioners, electric fans, electric cookers, refrigerators and microwave ovens.
(Xinhua News Agency June 4, 2004)
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