Tokyo--Toshiba Corporation today announced that it has entered into a joint venture agreement with Xian Xingyi Technology Co., Ltd., a Chinese manufacturer of control and instrumentation systems for thermal power plants, and its parent company, Xian Xingyi Enterprise Investment Co., Ltd. (hereinafter Xian Xingyi Group) covering the development, design, manufacture, sale and after-market service in the Chinese market of distributed control systems (DCS) and related information, control and instrumentation systems for thermal power plants.

The new JV, Toshiba Xingyi Control System (Xian) Co., Ltd., will be established in Xian, Shaanxi province this month. It will be 50 percent held by Toshiba Corporation, 10 percent by Toshiba China Co., Ltd., Toshiba's China subsidiary, 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 Distributed Control System (DCS) that monitors and controls overall plant operation; and also 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. Toshiba's systems deliver highly efficient, environmentally-friendly thermal power plant operation.

"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 Mr. Atsuhiko Izumi, Vice President of Thermal & Hydro Power Systems & 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; in 2006, the companies successfully provided DCS to Xingtai Thermal Power Station, in Hebei province. The new JV will combine Toshiba's technology and Xian Xingyi Group's strong sales force and quickly seek to build a commanding presence in China's fast growing market for information, control and instrumentation systems for thermal power plants.

Toshiba Xingyi Control System (Xian) Co., Ltd. is expected to be positioned as Toshiba's second business site for information and control systems for thermal power plants after Fuchu Complex, Toshiba's information and control systems production site in Japan, and anticipates sales of 5 billion yen (approx. US41 million dollars) by the end of fiscal year 2010.

Background and Aim

Driven by strong economic growth, China is expected to see a generating capacity growth rate in the range of 8.1 percent a year until 2010, and total installed capacity is expected to exceed 750GW in the same year, according to the economic plan announced by the Chinese government in 2006. Post 2010 growth is also expected to be strong, in the order of nearly 4% a year. China's thermal power plant construction market is notably large, accounting for two thirds of new thermal power plant construction worldwide.

This situation is stimulating rapid growth in demand for DCS and related information, control and instrumentation systems that govern and control thermal power plant operation.

Toshiba has provided 20 sets of large-scale steam turbines and generators for thermal power plants in China. By securing a new business site in China, Toshiba will further expand its thermal power plant equipment business, not only of steam turbine generators but also of information, control and instrumentation systems.

For Reference

Structure of Thermal Power Plant Information and Control System