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Toshiba forms thermal power JV with China firm

Posted: 23 Jul 2007 ?? ?Print Version ?Bookmark and Share

Keywords:thermal power plant? distributed control system? China firm JV?

Toshiba Corp. has entered into a joint venture agreement with Xian Xingyi Technology Co. Ltd, a China-based manufacturer of control and instrumentation systems for thermal power plants, and the latter's parent company, Xian Xingyi Enterprise Investment Co. Ltd. The agreement covers the development, design, manufacture, sale and after-market service in China of distributed control systems (DCS) and related information, and control and instrumentation systems for thermal power plants.

The new JV, called Toshiba Xingyi Control System Co. Ltd, will be set up in Xian, Shaanxi province this month and will be 50-percent held by Toshiba, 10 percent by Toshiba China Co. Ltd and 40 percent by Xian Xingyi Group.

Toshiba's information, control and instrumentation systems provide operation, monitoring and control of thermal power plants. The system includes the DCS that monitors and controls overall plant operation, as well as upper-level information systems, such as power plant data management systems, which interface with the DCS and record overall plant operation history. DCS also controls de-sulphurization and de-NOx systems.

"This investment is a significant step for Toshiba, one that will enable us to acquire a strong foothold in the rapidly growing thermal power generation market in China," said Atsuhiko Izumi, VP of thermal and hydro power systems and services division of Toshiba's power systems company. "Xian Xingyi Group is one of China's leading manufacturers of instrumentation systems, with a very capable sales force that really understands the Chinese market and local needs. Together, Xian Xingyi Group and Toshiba will form a powerful team based on complementary strengths."

Toshiba and Xian Xingyi Group have an established business relationship, and have collaborated in manufacturing and marketing of information, control and instrumentation systems.

Xian is expected to be positioned as Toshiba's second business site for information and control systems for thermal power plants after Fuchu Complex site in Japan, and anticipates sales of about $41 by the end of fiscal year 2010.

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