TOSHIBA Corp plans to shut down two of its sales subsidiaries in China and authorize its mainland partner to make and sell its white goods as the Japanese company downsizes its overseas business to narrow losses.
“Toshiba will tie up with Shenzhen-based Skyworth Digital Holdings Co to sell refrigerators, washing machines and vacuum cleaners from October, widening sales channels and bring production innovation in the world’s second-largest economy,” the company said in a statement yesterday.
Skyworth will buy a 5 percent stake in two of Toshiba’s factories in Shenzhen and Foshan, and provide some after-sales services on completion of the deal, the Japanese firm said.
Toshiba’s sales of white goods in China were worth 10 billion yen (US$84 million) a year, according to Japan’s Nikkei newspaper.
Toshiba posted a net loss of 37.83 billion yen for the fiscal year ended in March, down sharply from a 60.24 billion yen profit a year earlier.
Masashi Muromachi, chairman and president of Toshiba, said in a media briefing in Tokyo in August that its overseas plants for white goods needed to be consolidated.