Toto Ltd. and Matsushita Electric Works Ltd. said Tuesday they will mutually supply housing materials parts in China as part of their tieup in the housing materials business.

Toto and Matsushita will also engage in joint research and development programs in the Chinese market, which is expected to grow rapidly due to its entry into the World Trade Organization and its hosting of the 2008 Olympic Games, the two companies said in a joint news release.

Sanitary earthenware manufacturer Toto and building materials maker Matsushita announced a broad-ranging alliance in the housing materials business in September.

Toto and Matsushita said they will also jointly develop housing equipment by substantially cutting production costs and development times.

Specifically, Toto and Matsushita will release jointly developed bathroom units at competitive prices under their brands this fall, with combined sales projected at 10 billion yen for 2003.

The pair will also introduce washstands in spring 2003 with a goal of 6 billion yen in combined sales.c