TOKYO (Kyodo) -- Toshiba Corp. and General Electric Co. of the United States have agreed to set up a joint venture by the end of the year for the development and sales of a high-efficiency thermal power system, the Japanese electronics giant said Thursday.
The two firms have cooperated in sales of the combined-cycle power generation system in Japan and other Asia countries for over 30 years, and they will expand their business across the world through the new firm, possibly to be equally owned, given growing demand for thermal electricity generation.
Toshiba said it has yet to decide where the new firm will be set up.
The agreement apparently aims to counter the deal by two Japanese rivals -- Mitsubishi Heavy Industries Ltd. and Hitachi Ltd. -- on integrating their thermal power businesses.
Toshiba and GE plan to hold equal stakes in the joint venture.