China's Midea, Toshiba unit to form compressor JV

SHANGHAI, Feb 19 (Reuters) - China's Midea Electric Appliances Co 000527.SZ said on Tuesday it will form a refrigeration compressor manufacturing venture with a unit of Toshiba Corp (6502.T: Quote, Profile, Research, Stock Buzz), with planned total investment of 492 million yuan ($68.7 million) by October.

The joint venture, based in the central Chinese province of Anhui, will be 95 percent owned by Midea and have annual production capacity of 5 million compressors, Midea said in a statement. Toshiba Carrier Corp will hold the remaining 5 percent.

Midea will inject 309 million yuan into the venture, which will secure loans to fund the remainder of the planned total investment, it added.

Midea also said it planned to issue additional A-shares to raise 3.56 billion yuan to fund 10 investments, including the joint venture with Toshiba Carrier.

The other investments include the purchase of 25 percent stakes in three companies, including a refrigeration equipment manufacturer, and construction of an air-conditioner production facility in Vietnam, the company said. ($1=7.165 Yuan) (Reporting by Alfred Cang; Editing by Edmund Klamann)