OREANDA-NEWS. May 29, 2012. Toshiba Corporation (Tokyo: 6502) today announced that it has completed the final stage of establishing a joint venture, PM&T Holding B.V. (PM&T), with Open Joint Stock Company "Power Machines" (Power Machines), Russia's leading supplier of power generation equipment. PM&T will be the holding company for Toshiba and Power Machines' power transformer manufacturing company in Russia.

After receiving necessary regulatory approvals, Toshiba acquired 49.99% ownership of PM&T. Power Machines holds correspondingly 50.01% of the shares. PM&T will function as the holding company for Limited Liability Company "Izhora Transformers" (IZT), which will design, manufacture and sell power transformers. The joint venture is capitalized approximately at USD 50 million and the total amount of investment for the construction of new factory is planned to be more than USD 160 million.

Established in December 2011 in St. Petersburg, Russia, IZT is currently building a power transformer manufacturing factory that is scheduled to start operation in December 2013. IZT aims to promote business actively in Russia and other countries of the former Soviet Union, a major market characterized by growing power consumption and a need to replace aging transmission equipment including power transformers. IZT aims to secure a certain share of Russian market with products designed and manufactured under technology license agreement with Toshiba signed in April, this year.

Going forward, Toshiba will promote its power transmission and distribution business in Russia and other emerging economies and strengthen its global business structure.