"The agreement outlines the next stage of cooperation between Toshiba and UTC in the field of heating, ventilating and air-conditioning solutions through TCC," Toshiba said in a statement today.
The companies have set a target to accelerate growth and double the unit's USD 1.6 billion annual revenues by the next decade, it said.
The companies will also explore new opportunities for overseas manufacturing in India and North America, it said.
The deal will expand the venture's engineering and sales resources outside Japan and establish engineering centres in the United States and Europe, it added.
"With this new opportunity, we will create even greater synergies, increasing our global footprint and providing our customers greater value through innovative new solutions," said of Toshiba Corp CEO and President Hisao Tanaka said.