Carrier Corp., a unit of technology products company United Technologies Corp. (UTX) and Guangdong Midea Electric Appliances Co., Ltd. Wednesday agreed to form an air-conditioning manufacturing joint venture, Foshan Midea Carrier Air Conditioning Equipment Co., Ltd, in Shunde, China. Midea and Carrier will invest $29 million in registered capital in the establishment of the new company.
Hartford, Connecticut-based United Tech noted that Midea would have 60% stake in the joint venture and Carrier holding the minority stake. Production at the new venture is expected to commence by the end of the year. The JV would make residential and light commercial duct-free split air-conditioning systems exclusively for Carrier for the global market.
In addition to Foshan Midea Carrier, Midea Air Conditioning and Toshiba Carrier Corp. have four successful manufacturing joint ventures. Carrier indirectly participates in those joint ventures through its minority ownership of Toshiba Carrier.
UTX is currently trading at $60.44, down $0.23 or 0.41%, on a volume of 5.74 million shares.
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