Toshiba Corp. will set up a joint venture in October with General Electric Co. of the United States in the field of industrial automation systems, Toshiba announced on Tuesday.
The two firms will unify their marketing and after-service businesses relating to the supply of automation systems to manufacturers of industrial products like metal and paper.
Under the tieup, Toshiba and GE will set up a holding firm -- tentatively named Toshiba GE Automation Systems International LLC -- with capital of about 7 billion yen.
Toshiba will hold a 51 percent stake in the venture, while GE will finance 49 percent. Toshiba estimates annual sales of between 40 billion yen and 45 billion yen.
Toshiba and GE will provide some of the venture's products, with the remainder coming from other firms.
Under the holding company, a Japanese subsidiary and an American subsidiary will be created to promote regional marketing efforts. The Japanese firm will be responsible for marketing in Asia and Oceania, while the American company will be in charge of the American markets.
Toshiba currently holds about 9 percent of the global market for industrial automation systems while GE accounts for about 7 percent, according to a Toshiba spokesman.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.