| Toshiba Enhances Thermal Power
Generation Service in North America
02 April, 2007
Takes Majority Stake in ReGENco, a leading independent service provider
TOKYO--Toshiba Corporation today announced that its United States subsidiary for power plant systems and equipment, Toshiba International Corporation (TIC), has reinforced its customer service, maintenance and support capabilities by taking a majority stake in privately held ReGENco LLC (ReGENco). TIC purchased the ownership interests of ReGENco's non-management investors including Heartland Energy Services, Inc., on March 30.
ReGENco is one of the largest independent turbine-generator maintenance and repair organizations in North America. ReGENco's capabilities include consulting, parts manufacture, maintenance, repair and upgrade of third-party thermal and hydro power turbines and generators.
"We are delighted to have concluded this agreement with ReGENco," said Atsuhiko Izumi, vice president of Thermal & Hydro Power Systems & Services Division of Toshiba's Power Systems Company. "Toshiba is a leading supplier of combined-cycle and coal-fired thermal power generating equipment in North America. By maximizing the use of ReGENco as our authorized local service provider for this essential market, and making full use of ReGENco's extensive repair, maintenance, parts manufacturing, procurement and fast turnaround time, we will strengthen our overall capabilities and optimize the total support we offer our customers."
"This is an excellent opportunity for ReGENco," said John Bobrowich, CEO of ReGENco. "Providing service support for Toshiba's large and rapidly expanding installed base of steam turbine generators in North America, will allow ReGENco to better serve our existing broad customer base, many of whom are now adding Toshiba manufactured units to their fleets.This is a win-win agreement for all the involved parties, and will assure that our North American plant operators get the best support available for all their units."
Toshiba continues to expand its presence in the North American thermal power plant equipment market. Toshiba anticipates that its US installed base of steam turbine generators will grow to over 100 units by 2010, while its market presence will be further enhanced by its success in offering a variety of aftermarket services for steam turbine generators, based on Toshiba's advanced steam turbine and generator technology.BACKGROUND
While continuing liberalization in Japan constrains plant investment by Japanese utilities, there is growing demand for investment in power plants in overseas markets, including China and the United States. Toshiba is responding by expanding overseas operations, including production facilities. Toshiba's Power Systems Company expects its overseas sales to reach approximately 50% of total sales in fiscal year 2006.
Toshiba has supplied approximately 80 steam turbine generators for thermal power plants in North America, including plants now under construction, and expects to see continued demand growth. Toshiba forecasts that the North American power plant business will grow by over 30% by 2010. By acquiring a majority stake in ReGENco and positioning the company as a regional base for steam turbine generator maintenance and services, Toshiba expects to provide enhanced customer satisfaction and expanded thermal power maintenance and services in North America.
Name: ReGENco LLC
Name of CEO: John Bobrowich
Establishment: November 1999
Capital: US3.9 million dollars
Shareholders (after the agreement):
Toshiba International Corporation
John Bobrowich (continues to serve as president and CEO)
Jim Mathes (continues to serve as COO)
Location: West Allis, Wisconsin, U.S.A.
Employees: Approximately 120
Sales: Approximately US27 million dollars, as of December 2006.
|Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.|