Carrier and Toshiba Make it Official, Form Global Strategic Alliance

1 April 1999

Carrier and Toshiba Make it Official, Form Global Strategic Alliance

    FARMINGTON, Conn.--April 1, 1999--What was agreed to in principle seven months ago became official today as Carrier Corporation and Toshiba Corporation announced the formation of a global strategic alliance in the heating, ventilation, air conditioning and refrigeration (HVACR) industry.
    Toshiba is a Japanese leader in residential and light commercial air conditioning, ventilation, refrigeration equipment and compressors. Carrier is the world's largest manufacturer of HVAC systems and equipment, with 1998 worldwide sales of $6.9 billion. Toshiba's air conditioning equipment division had 1997 fiscal year sales of $1.1 billion.
    The alliance combines Carrier's and Toshiba's complementary product offerings and capabilities in technology innovation, manufacturing, quality assurance, and sales and marketing.
    "This unique partnership will truly change our industry," said John R. Lord, Carrier president. "It allows Carrier to expand our presence in Japan, the single largest market outside of the United States for air conditioning equipment. We are encouraged at the prospects of improving our competitiveness throughout the world with world class technology and the Carrier and Toshiba trademarks."
    Toshiba's products incorporate several technological advances, including power electronics, variable speed systems, alternative refrigerants and compression. "In addition, this joint venture will help us further improve our manufacturing quality and field reliability, and give us access to the powerful Toshiba brand name for air conditioning anywhere in the world," said Lord.
    Under terms of this alliance and effective today, Toshiba's entire Air Conditioning Equipment Division separates from the parent company to form with Carrier a Japan-based joint venture headquartered in Fuji City, Japan. Carrier owns 40 percent of the new Toshiba Carrier Corporation and Toshiba owns 60 percent. Carrier's current Japanese subsidiary, Toyo Carrier, becomes part of the new joint venture company. In addition, Carrier and Toshiba Carrier Corporation 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 transfers its air conditioner manufacturing operations in both countries to these new joint ventures.
    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.
    A memorandum of understanding was signed between the two companies August 31, 1998.
    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.