BEIJING - Toshiba Carrier Corp. has completed a deal to acquire 20 percent of Guangdong Midea Electric Appliances Co. Ltd., Air Conditioning Division (Midea Air Conditioning).

According to Toshiba Carrier, Midea Air Conditioning has sales of $1.2 billion and is the second largest air conditioning company in China. It is involved in both the residential and light commercial markets.

Under the terms of this agreement, Midea will produce residential and light commercial air conditioners primarily under the Midea and Toshiba brands, as well as air conditioners for original equipment manufacturer (OEM) customers. In addition, it will distribute Midea and OEM branded products.

Carrier has a leading share of the commercial business in China, says the company, but until now did not participate in the residential business, the country's largest segment. The investment in Midea provides access to this segment.

Production of air conditioners under the Toshiba brand is now underway and, in 2005, production capacity is planned to reach about 10 million units for both the Midea and Toshiba brands.

China is one of the largest and fastest growing air conditioning markets with close to 20 million residential systems sold in 2003 and an estimated value of nearly $5 billion.

Publication date: 01/10/2005