Toshiba, Carrier in Air-Conditioner Venture

Japanese consumer electronics giant Toshiba Corp. said it will set up an air-conditioner joint venture in Japan next year with Carrier Corp. Carrier, a unit of Hartford, Conn.-based United Technologies Corp., is the world’s largest manufacturer of heating, ventilation and air-conditioning 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. Toshiba said it will shift its air-conditioner operations to the joint venture, which will be 60% owned by Toshiba and the rest by Carrier. Toshiba said it plans to transfer 2,200 staff members in its air-conditioner division, along with its domestic air-conditioner manufacturing plants, to the joint venture, which will be named Toshiba Carrier Corp. Toshiba also said its air-conditioner sales organizations in places such as Singapore, Hong Kong and German, will be folded into Carrier’s existing operations. The deal is expected to be completed in the first half of 1999. United Technologies’ shares fell $5.94 to close at $72.56 on the NYSE.