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Toshiba Optimistic About China Market
China will become one of the fastest growing markets for Toshiba and may become the second largest single market for the Japanese electronics giant, overtaking the United States within seven years, said a senior executive with Toshiba (China) Co Ltd.

"Toshiba's development in China was one of the driving forces of the whole corporation's progress last year," said Nobumasa Hirata, chairman and chief executive officer of Toshiba (China).

Hirata said in an interview that his business saw a growth of 20 per cent last year, the highest among Toshiba's global operations, and the momentum would be maintained this year.

"At present, our business volume in China only accounts for about 6 per cent of Toshiba's worldwide revenues, while our United States operation contributes about 10 per cent, but by 2010, China will become the largest overseas market for Toshiba, instead of the United States," he said.

Hirata revealed that his business posted US$3 billion in sales the world's most populous market last year.

During the same period, Toshiba also opened 10 new ventures in the fast growing economy, taking the total number in China to 34 with a US$1 billion investment.

In spite of these achievements, Hirata continues to cast his eye further.

"We will invest in four or five new projects in China this year," Hirata said.

By the end of this year, the Toshiba (China) executive predicts the number of its employees across the country will be 16,000, significantly up on last year's 11,000.

Hirata said demand for infrastructure for the 2008 Olympic Games, the World Expo 2010 in Shanghai and China's "Go West" strategy will bring abundant opportunities for Toshiba's infrastructure businesses, such as power and steel plant equipment and construction.

Consumer products will also become a focus area for the company.

Hirata pointed out that Toshiba's 400,000 square-metre industrial park in Hangzhou, capital of East China's Zhejiang Province, will not only act as a production base, but also a research and development and logistics centre for the company.

The production of notebooks will reach 1 million units this year and 2.4 million in 2004.

Toshiba will also build research and production facilities for products like refrigerators, washing machines and air conditioners in the park, he said.

The electronic giant, also a leader in the CDMA (code division multiple access) mobile communication market in Japan, has cast its eyes on the Chinese market.

"We will only focus on CDMA 1X, where we have advantages, and our goal is to acquire 20 per cent of the market share this year," said Hirata.

Nanjing Postel WonZhi Telecommunications Co Ltd, a joint venture of Toshiba, China Putian Information Industry Group and Hong Kong-based Wong's International, aims to produce 1 million CDMA mobile telephones a year, Hirata added.

(China Daily January 23, 2003)

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