TOKYO--(BUSINESS WIRE)--Mitsubishi Electric Corporation (TOKYO:6503) today announced that on 23 February 2011, its wholly-owned subsidiaries Mitsubishi Electric Automation (China) Limited and Mitsubishi Electric (China) Co., Ltd. entered into a joint venture agreement with Shanghai Electric Environmental Protection Investment Co., Ltd., a wholly-owned subsidiary of Shanghai Electric Group Company Limited.
The primary objective of the joint venture (JV), based in Shanghai, is environmental protection through the development, design, integration and production of industrial energy saving systems. The JV is tentatively named Shanghai Electric Ryoden Energy Saving and Control Technology Co., Ltd., subject to approval by the industrial and commercial registration authorities.
Pursuant to the terms of the JV agreement, the registered capital will amount to RMB 34 million. Mitsubishi Electric Automation (China) Limited and Mitsubishi Electric (China) Co., Ltd. will contribute a total of RMB 16.66 million in cash for 49% equity interest.
The government of China is promoting environmental protection and energy saving initiatives, and the energy saving market is expected to expand as a result of China’s rapid economic development. Mitsubishi Electric Corporation’s decision to collaborate with Shanghai Electric Group Company Limited, its Chinese partner in the elevator business, is designed to reinforce its operations in the industrial energy saving business in China.
About Mitsubishi Electric
With 90 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (TOKYO:6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. The company recorded consolidated group sales of 3,353.2 billion yen (US$ 36.1 billion*) in the fiscal year ended March 31, 2010. For more information visit http://www.MitsubishiElectric.com
*At an exchange rate of 93 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2010