Toshiba make strongers Hydro Power Equipment Production in China

Tokyo–Toshiba Corporation (TOKYO: 6502), one of the leading global suppliers of hydro power generating equipment, today announced that its Chinese consolidated subsidiary, Toshiba Hydro Power (Hangzhou) Co., Ltd. (THPC) has completed the first phase of a four-year expansion program: a state-of-the-art generator coil shop at its manufacturing facility in Zhejiang. Under the 170-million yuan (approximately US$25 million) program, which will run to fiscal year 2009, THPC will boost its manufacturing output of hydro power generating equipment to over twice that of fiscal year 2007.

THPC owns and operates casting, welding, assembly and machining, and coil shop, and manufactures hydro power generating equipment. The company has expanded its coil shop to 9,000 m2, and installed advanced equipment for production of world-class electrical components for hydro turbine generators parts, including coils and poles.

The scope of the investment program also covers expansion of the assembly and machining shop and construction of an advanced hydraulic research laboratory equipped with a cutting-edge hydro turbine model test facility. It will be China’s first(1) hydro power R&D facility built by a joint venture.

Since it was established in January 2005, THPC has supplied more than 80 hydro turbines and generators in China, and successfully expanded its business by drawing on Toshiba’s rich expertise in R&D, design and high-quality manufacturing.

“We are pleased to open the new generator coil shop,” said Mr. Yasuharu Igarashi, Corporate Vice President of Toshiba Corporation and President & CEO of Toshiba’s Power Systems Company. “Through world-class technology and production enhancement under the FY2009 investment program, THPC will position Toshiba Group to competitively meet growing demand for hydro power, and to contribute to securing a stable electricity supply in China and, through exports, other Asian countries.”
Hydro Power Generation and Strong Growth in the Chinese Market for the Equipment

Hydro power generation is the world’s most widely used renewable energy source. In respect of energy strategy and achieving an optimized energy generation mix, stable output and operating costs, Toshiba recognizes hydro power generation as equal in importance to nuclear and thermal power, including geothermal energy. China leads the world in the scale of hydro power plant construction, and is reported to account for half of all new projects, according to reports. Growth is expected to continue, driven by China’s continued economic expansion and increasing need for environmentally-friendly renewable energy. Under the government’s Eleventh Five-Year Plan (2006-2010), the installed capacity of hydro power generating equipment is expected to reach 190 gigawatts (GW) in 2010 and 300GW in 2020.

Outline of THPC’s New Coil Shop

* Structure: Steel frame concrete, two stories
* Building Area: Approximately 9,000 m2  (Before expansion: Approximately 3,500m2)
* Products: Coils, poles and core stacks for hydro turbine generators

Outline of THPC

* Established: January 2005
* Capitalization: US$25 million
* Holding: Toshiba Group: 80%, Sinohydro Corporation: 20%
* Location: 1, Gongren Rd., Fuchunjiang, Tonglu, Zhejiang 311504, China
* Chairman and President: Norikazu Inomata
* Site Area: Approximately 180,000 m2
* Building Area: Approximately 66,000 m2
(After expansion: Approximately 75,700 m2, under FY2009, plan).
* Employees: Approximately 1,000 (as of the end of October, 2008)
* Business: Manufacture, marketing and maintenance services for hydro power generating equipment