Carrier Announces Air Conditioning Alliance with Toshiba

31 August 1998

Carrier Corporation Announces Air Conditioning Alliance with Toshiba Corporation

    FARMINGTON, Conn.--Aug. 31, 1998--Carrier Corporation today announced the signing of a memorandum of understanding to form a strategic alliance with Toshiba Corporation, a Japanese leader in residential and light commercial air conditioning, ventilation equipment and compressors.
    This alliance will combine Carrier's and Toshiba's complementary product offerings and capabilities in technology innovation, manufacturing, quality assurance, and sales and marketing.
    "This is an awesome partnership that will allow Carrier to expand its presence in Japan and improve its competitiveness throughout the world with both Carrier and Toshiba technology and trademarks," said John R. Lord, Carrier president.
    Carrier is the world's largest manufacturer of heating, ventilation, and air conditioning (HVAC) systems and equipment, with 1997 worldwide sales of $6.1 billion. Toshiba's air conditioning equipment division had 1997 fiscal year sales of $1.1 billion.
    Under terms of this alliance, Toshiba will separate its entire Air Conditioning Equipment Division from the parent company and form with Carrier a Japan-based joint venture. Carrier will own 40 percent of Toshiba Carrier Corporation and Toshiba will own 60 percent. Carrier's current Japanese subsidiary, Toyo Carrier, will become a part of the new joint venture company. In addition, Carrier and Toshiba Carrier Corporation will form manufacturing joint ventures in the U.K., with Carrier holding a majority interest, and in Thailand, with Carrier and Toshiba Carrier Corporation owning equal interests. Toshiba will transfer its air conditioner manufacturing operations in both countries to these new joint ventures. Carrier and Toshiba Carrier Corporation will also establish sales and marketing joint ventures in the U.K., Thailand and Malaysia, with Carrier holding a majority interest in each.
    Further, Carrier will integrate Toshiba's HVAC sales organizations, including those in Singapore, Hong Kong, France and Germany, and combine them with Carrier's existing operations. Carrier will complement its current line of products by also offering the Toshiba branded HVAC products globally.
    Carrier and Toshiba expect to consummate the alliance during the first half of 1999.
    Carrier Corporation is a subsidiary of United Technologies Corporation , a provider of a broad range of high technology products and support services to the aerospace, building systems and automotive industries.