Toshiba to set up factory near Shanghai

Associated Press

TOKYO — Japanese electronics maker Toshiba Corp. plans to build a large-scale information technology factory near Shanghai, China, a newspaper said yesterday.

The move is designed to centralize the company's information technology operations in China and cut costs, the Yomiuri newspaper said, quoting unidentified sources.

In recent years, many Japanese manufacturers have entered the Chinese market through joint ventures with local interests, but Toshiba will be the first Japanese company to construct a large-scale industrial complex on its own, the Yomiuri said.

The newspaper said Toshiba's president Tadashi Okamura will visit China as early as next month to establish the wholly owned subsidiary operating the plant.

The new project will be completed in two years and cost hundreds of millions of dollars, the report said.

Toshiba spokeswoman Midori Suzuki said the company was considering construction of a large production facility in China, but refused to comment on such details as location, startup date or product range.

Suzuki also declined comment on Okamura's reported trip.

According to the Yomiuri, the plant will produce personal computers for the global market and will eventually expand its production to audiovisual products, including DVD players and videotape players.

The company already produces mobile phones and televisions in China, where relatively low labor costs attract many Japanese manufacturers.

The Yomiuri said Toshiba plans to gradually transfer production from plants in Japan, the United States, Europe and the Philippines to the new complex in China.