Toshiba Corp. and Mitsubishi Electric Corp. said Tuesday their new joint venture will tentatively be named Toshiba Mitsubishi-Electric Industrial Systems Corp.

The electrical machinery makers agreed April 18 to set up the 50-50 joint venture, under which the firms will integrate their electrical equipment businesses for manufacturing plants, with the goal of launching operations Oct. 1.

The venture will constitute the world’s third-largest manufacturer of industrial electrical equipment, after Siemens AG of Germany and ABB Ltd.

The new company will be capitalized at 15 billion yen, excluding about 20 billion yen in capital reserves, Toshiba and Mitsubishi Electric said in a joint statement.

Isamu Matsuyama, former managing director of Mitsubishi Electric, will serve as president of the joint venture. The new company will handle sales, engineering, installation and servicing of industrial electric and automation systems used in steel, pulp and paper, petrochemical, automobile, food and other manufacturing plants.

The joint venture will take control of the relevant divisions of the two companies, including TMA Electric Corp., a Toshiba-Mitsubishi Electric venture.

GE Toshiba Automation Systems LLC, a U.S. joint venture between Toshiba and General Electric Co., will become a subsidiary of the joint venture, the firms said.

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