Japan's Toshiba Lifestyle Products & Services Corporation announced that starting from October 2015, the company will begin manufacturing and sales cooperation covering refrigerators, washing machines, and vacuum cleaners with Skyworth, a leading TV maker in China.
According to the agreement of the two parties, on the manufacturing side, Toshiba HA Manufacturing (Nanhai) Co., Ltd., a manufacturer of refrigerators and washing machines, and Toshiba Home Appliances Manufacturing (Shenzhen) Co., Ltd., a manufacturer of vacuum cleaners, will both receive a 5% capital injection from Skyworth. On the product sales side, Skyworth will be responsible for the sales of Toshiba's refrigerators, washing machines, and vacuum cleaners in the Chinese market. In addition, the two parties will work together for product post-sales services.
Specific financial terms of the deal were not released.
In 1930, Toshiba made the first refrigerator and washing machine in the Japanese market and the company has extensive experience in the development, manufacturing and sales of refrigerators and washing machines. The company's products had been leading the Japanese market, especially high-end multi-door air-cooled refrigerator and dry-cleaning machine.
With the cooperation, Toshiba will integrate Skyworth's procurement ability and low-cost operating technologies to produce more competitive white goods. Meanwhile, Skyworth will be able to explore high-end market, optimize channel structure, and promote the development of its refrigerator and washing machine business by cooperating with Toshiba in market, technology and manufacturing sectors.