Toshiba to spend Y700bn on investments, technology acquisitions & M&As ……

Toshiba Corp. has decided to create a 700 billion yen war chest to invest in the environment and energy fields over three years in a strategy that will include mergers and acquisitions.

This will expand the firm’s capital and R&D investment budget for fiscal 2011 to fiscal 2013 to a record of slightly more than 3 trillion yen, up 50% from the fiscal 2008-10 period.  Toshiba has set up a research facility for smart grids in Fuchu, Tokyo.
By creating a large pool of funds for investing in the environment and energy businesses, Toshiba aims to swiftly tap demand stemming from infrastructure projects in both the disaster-struck northeast and emerging countries.

In its three-year business plan announced last May, Toshiba budgeted 1.3 trillion yen for capital outlays and 1.07 trillion yen for R&D investment for fiscal 2010 to fiscal 2012. Adding the 700 billion yen war chest would mean that for the three-year period through fiscal 2013, the company’s total investment budget would be nearly 30% higher by comparison.

Toshiba’s nuclear-focused strategy has suffered a serious setback since the accident at the Fukushima Daiichi power plant. The firm has stepped up efforts to tap the markets for solar and other renewable sources of energy, as well as smart grids, as demand in these areas continues to grow.

On the heels of its recent agreement with Landis+Gyr to purchase the Swiss smart-meter manufacturer for around 190 billion yen, Toshiba on Monday announced plans to become the top shareholder in South Korean firm Unison Co. The Japanese firm will buy some 3 billion yen in Unison convertible bonds as a first step, raising its stake in the producer of wind power generation equipment to about 30% in a year or so.

Toshiba also plans to boost output at a lithium ion battery plant in Kashiwazaki, Niigata Prefecture, in anticipation of higher demand for use in smart-grid systems.