The two companies agreed to set up the 50-50 joint venture, to commence operations on 1 October, 2003. The joint venture will be the world's third largest manufacturer of industrial electric equipment, after Siemens and ABB.
The new company will be capitalised at 15 billion Yen ($125 million), excluding 20 billion Yen ($165 million) in capital reserves.
Isamu Matsuyama, former managing director of Mitsubishi Electric, will serve as president of the joint venture. The new company will handle sales, engineering, installation and servicing of industrial electric and automation systems. GE Toshiba Automation Systems, a US joint venture between Toshiba and General Electric, will become a subsidiary of the joint venture.
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