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Mitsubishi Electric and Shihlin Electric to Set Up JV in China to Design, Produce and Sell Low-voltage Switchgears
Representatives from the two companies sign JV agreement
The new company, Mitsubishi Electric Low Voltage Equipment (Xiamen) Co., Ltd., will be located on the premises of Xiamen Shihlin Electric, an affiliate of Shihlin Electric & Engineering. The company will have paid-in capital of 6.5 million USD, or approximately 500 million Japanese yen, with Mitsubishi Electric, Mitsubishi Electric (China) and Shihlin Electric holding 60 percent, 10 percent and 30 percent shares, respectively.
The joint venture is expected to have a workforce of 110 by the end of March 2016, and targets annual sales of 7 billion Japanese yen, or 540 million RMB, by the same fiscal year.
Manufacturers are increasingly migrating from China's economically developed eastern coast to central and western regions where the government is promoting development with incentives. New production facilities and offices are stimulating the demand in these regions for low-voltage switchgears, which are used in control panels for manufacturing equipment and electrical distribution systems in buildings. Mitsubishi Electric intends to meet these increasing regional demands while also expanding its low-voltage equipment business nationwide through the new joint venture with Shihlin Electric.
Mitsubishi Electric Corporation