IBM bought cloud services company SoftLayer for $2bn last year, and this investment will double the subsidiary's storage capacity, the company said.
Combined with the lowest cost base in Asia, that has made for impressive financial returns.Baoshan Iron & Steel, the Shanghai-listed subsidiary of Baosteel, with capacity of some 12m tonnes, will generate a pre-tax margin of 21% in 2003, forecasts ING, a bank unheard of for a steelmaker.
General Motors demanded yesterday that its Japanese partner, Isuzu Motors, take "radical" steps to return to profitability by exiting underperforming businesses, selling subsidiaries and cutting plant capacity.
Mercedes-Benz parent company Daimler, for instance, announced late last year it will invest 100 million euros ($113 million) to expand its lithium-ion manufacturing capacity through its subsidiary Deutsche ACCUmotive.
What has captured the most attention about N.Y.U.'s new plan is its use of a for-profit subsidiary to build its Internet capacity.
Since last May, the company's subsidiary, Epik Communications, has been selling capacity to move digital information through fiber optic cables that run alongside chugging train cars piled high with crushed stone, building materials and vehicles.
Lucent Technologies Inc., the No. 1 maker of telephone equipment, said yesterday that it would sell at least $100 million in laser components to a subsidiary of Tyco International Ltd. to increase capacity on an undersea communications network.
One document discussed how a deal in which one subsidiary, El Paso Natural Gas, sold pipeline capacity to a sister company, El Paso Merchant Energy, would allow the company to "widen" the difference between what gas could be bought for in Texas and New Mexico and what it could be sold for in California.
Mr. Henderson is also committed to expanding G.M.'s worldwide manufacturing capacity, whether through subsidiaries, partnerships or joint ventures.
But in preparation for the day when wireless carriers increase their network capacities, Toshiba America Electronic Components, a subsidiary of Toshiba, has designed a chip to decode video once it has been sent to a wireless device.
Together with its regional subsidiaries, it has a generating capacity of 156,000 megawatts, nearly equivalent to Germany's and Britain's combined.
