Toshiba air-conditioning products are exhibited at the China Refrigeration Expo. [Photo/VCG]

Construction will start on Oct 18 for the new complex of Toshiba Carrier Air Conditioning (China) Co., Ltd, in the Hangzhou economic and technological development zone, Zhejiang province, local media reported.

Toshiba Carrier Corporation, an air-conditioning joint venture between Toshiba of Japan and Carrier Air Conditioning & Refrigeration Limited of the United States, announced the establishing of the project in June.

The new state-of-the-art premises, scheduled to open in March 2020, has a total investment of 400 million yuan ($57.73 million) and will include corporate offices as well as research and development facilities and manufacturing space.

Once put into operation, the project is expected to halve the research and development time of Toshiba air-conditioning products in China and further expand the global market.

"400 million is a big amount of investment for Toshiba Carrier, but it is worthwhile because we are positive about the outlook of the Chinese market", said Yamashita Tetsuji, president of Toshiba Carrier Air Conditioning (China) Co., Ltd, adding that China accounts for half of the global market share in air conditioners, making it a huge market.

Talking about landing in Hangzhou, he noted that many subsidiaries of the Toshiba Group have settled in the city and they coordinate with each other. Moreover, Hangzhou enjoys a developed transportation system and a large talent pool.

In 2013, Toshiba Carrier established their Chinese air conditioner production base in Hangzhou. By the end of last year, the sales volume of Toshiba air conditioners had increased by over 25 percent for three consecutive years.